Telangana HC Upholds Cancellation of Patanjali Foods’ Factory Zone

The Story in Brief

The Telangana High Court has upheld the state government's cancellation of Patanjali Foods' oil palm factory zone in Suryapet district. A division bench dismissed the company's appeal, ruling that it had failed to set up a processing unit within 24 months as required under its 2017 agreement, despite multiple extensions and show-cause notices.

The court rejected Patanjali's argument that clause 15 of the agreement, which lets it continue procuring fruit bunches, overrode the obligation to build a mill. It noted that the state had issued four show-cause notices and a personal hearing before cancelling the allotment in March 2025. The zone has been re-allotted to another company.