Now Reading: Telangana HC Upholds Cancellation of Patanjali Foods’ Factory Zone
-
01
Telangana HC Upholds Cancellation of Patanjali Foods’ Factory Zone
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…
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.
The Indian Opinion
The narrative that the state government acted arbitrarily against a large investor misses the court's finding of repeated extensions and show-cause notices over three years. Patanjali's claim that market prices and rainfall justified the delay also ignores that it signed a binding agreement spelling out a 24-month deadline. Both sides have a point: business conditions can be tough, but contracts matter. The real test is whether similar defaults by other firms will get the same treatment, or only prominent ones.
Source: livelaw.in
This story was synthesised by AI from the source linked above.
