In Brief
Piaggio Vehicles Pvt. Ltd. held a 33-acre industrial plot in Uttar Pradesh under a 2002 lease deed requiring factory construction and production within six months. Despite obtaining initial permissions, the company failed to undertake any substantive construction work for over six years, citing resource allocation to its facility in Maharashtra. After warnings, the State Industrial Development Authority cancelled the lease in August 2008 for breach of terms. The Supreme Court upheld the cancellation, holding that the company demonstrated no bona fide intent to establish the industrial unit. The Court rejected arguments for extension or retrospective application of 2024 amendments, emphasizing that industrial plots must be actively utilized, not held indefinitely. The company was directed to surrender possession within 30 days.
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