The Telangana High Court has upheld the State Government's decision to cancel the Suryapet oil palm factory zone allotted to Patanjali Foods Limited, finding that the company failed to establish a processing unit within the stipulated period despite repeated opportunities. Patanjali has been engaged in oil palm cultivation in the State since 2009, initially through MAC Oil Palm Limited, which was subsequently amalgamated with the company. Under Clause 5(b) of the MOA, the company was required to establish an oil palm processing unit within 24 months of entering into the agreement. It also informed the authorities that it was taking steps to identify and acquire land for the processing unit. Even assuming it was not, Patanjali's obligation to establish the processing unit remained binding.