In Brief
Shivashakti Sugars Limited sought to establish a sugar factory 15 km from another mill (Raibagh Sahakari). Although initially no statutory distance requirement applied, a 2006 amendment to the Sugarcane Control Order made 15 km mandatory between existing factories. The High Court cancelled Shivashakti's licence, finding Raibagh an existing factory within that radius. The Supreme Court reversed, holding that Raibagh—which had not crushed sugarcane for five years—was not an "existing" factory under the statutory definition. Moreover, having granted no-objection earlier, Raibagh had waived the distance requirement. The Court permitted Shivashakti to continue operating, citing substantial investment (Rs 300 crores), employment creation (377 regular + 7,150 indirect jobs), electricity generation, and adequate sugarcane supply to all factories.
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