Supreme Court Upholds Plot Cancellation for Piaggio Vehicles

The Supreme Court confirmed the cancellation of Piaggio Vehicles Pvt. Ltd's lease for a 33-acre industrial plot in Uttar Pradesh, citing the company's failure to adhere to lease conditions and utilize the land meaningfully. Piaggio's appeal against the High Court's decision was rejected due to lack of progress and engagement with stipulated requirements.

The Supreme Court has upheld the cancellation of an industrial plot lease allocated to Piaggio Vehicles Pvt. Ltd in Uttar Pradesh. The decision comes after the company was unable to fulfill lease conditions and left a 33-acre plot in Greater Noida's Surajpur unused for years.

A bench comprising Justices Vikram Nath, Sandeep Mehta, and N V Anjaria maintained that the Uttar Pradesh State Industrial Development Authority's (UPSIDA) decision to annul the lease was justified. Despite obtaining possession in 2002, Piaggio neither commenced construction nor initiated industrial production within the required period.

The court highlighted the lack of substantive development efforts and dismissed Piaggio's plea for extended time, citing unmet conditions like timely fee payment. The apex court ordered Piaggio to return the land to UPSIDA within 30 days while ensuring the company is refunded Rs 10.95 crore with interest.

(With inputs from agencies.)