Patna, July 6: Patna High Court today paved the way for the Vijay Mallya-owned UB Group to begin construction on its proposed beer factory in Naubatpur.

The division bench of Justice Prakash Chandra Verma and Justice Vikash Jain passed the order while dismissing a bunch of petitions filed by farmers whose land had been acquired by the state government for setting up industries in the vicinity.

The bench said the allotment made by Bihar Industrial Area Development Authority (Biada) to the UB Group is in accordance with the law.

These farmers (petitioners) had sought quashing of the acquisition and subsequent transfer of land to UB for setting up a beer factory at Naubatpur, 25km southwest of the state capital.

On February 15, the court had stayed the construction work of the beer factory. But it vacated the stay on March 21, clearing the decks for construction work after the brewery major had agreed to pay an additional amount to the farmers. The petitioners gave an undertaking that they would not put up any further obstruction.

But the farmers rescinded on their pledge and again filed a review petition seeking adjudication of the case on the basis of merit. The court, after hearing both parties, held in favour of UB, saying the land acquisition and allotment are in consonance with law.

Appearing for Biada, additional advocate-general Lalit Kishore submitted that the government carried out land acquisition according to norms laid down for establishing industries. “The state had acquired the land for setting up industries in the state which is a public purpose….Our presence on the industrial map is negligible. Government is carrying out roadshows to attract industrial investments in the state,” Kishore said.

The petitioners’ counsel, Ambuj Nayan Choubey, argued that the government had acquired about 96 acres of land in Kopakalan village of Naubatpur block to set up sugar factories and other related industrial units in 2008.

The government later handed over the land to Biada, which transferred 42 acres to UB in 2011 on a 90-year lease deed, he said. Of these 42 acres, about 13 acres belonged to 27 farmers who approached the court for quashing the acquisition and subsequent lease deed. The petitioners submitted that the government had acquired land for public purpose under emergency sections of the Land Acquisition Act but it later transferred a good portion of the land for setting up a brewery, which in no way could be termed as “public purpose”.

Industrialists have welcomed today’s judgment, saying it would give a fillip to the process of industrialisation.

Bihar Industries Association president K.P.S. Keshri said the decision vindicates Biada’s stand that land acquisition has been carried out for public purpose. “Ultimately, a beer factory is also an agri-produce-based industry,” he said.