Hyderabad, Aug. 13 -- The Telangana High Court upheld the state government's decision to cancel an oil palm factory zone in Suryapet district allotted to Patanjali Foods Limited, holding that the company failed to set up a processing unit within the agreed timeframe despite repeated extensions.

A division bench of Chief Justice Aparesh Kumar Singh and Justice GM Mohiuddin dismissed Patanjali's appeal against an earlier single-judge ruling that had upheld the cancellation. The court also found the company's performance in meeting plantation targets in the zone unsatisfactory, with only about 14 per cent of the proposed area actually covered.

"Admittedly, the appellant failed to establish the processing unit within the stipulated period a...