In Brief
This case concerned a dispute over industrial land in Kota, Rajasthan, allotted to J.K. Synthetics Ltd. in 1958 under state-government control. After JKSL was declared sick, Arfat Petrochemicals took over operations and received new lease deeds in 2007. The company later sought permission from RIICO (a state corporation) to convert 23% of the land to commercial use, which was granted in 2018. However, a new government cancelled these permissions, deeming them unauthorized. The Supreme Court upheld the cancellation, holding that the State Government retained lessor status throughout, and RIICO lacked authority to grant conversion approvals or execute supplementary leases. The Court rejected claims of legitimate expectation and promissory estoppel, as RIICO's actions were ultra vires. The decision preserves the industrial use mandate while leaving open the possibility for the company to seek conversion directly from the State Government under applicable rules.
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