SUDHIR AGARWAL, J. - (1.) This writ petition has been filed by two share holders of Dwarikesh Sugar Industries having registered office at C-7, Ganga Vihar Colony, Dwarikesh Nagar, P.O. Medhpura Sultan, District Bijnor, challenging Sugar Policy of 2013 promulgated by State Government vide Principal Secretary, Sugar Industries and Cane Development Department's letter dated 28.01.2013. It is contended that aforesaid policy is arbitrary inasmuch it causes discrimination in favour of new sugar industries vis-a-vis already established Units by granting extraordinary concessions to new Industries and putting existing Units in unequal competition with new industries, would cause huge loss to public exchequer. Reliance is placed on Col. A.S. Sangwan v. Union of India and others 1980 (Supp) SCC 559 and State of Madhya Pradesh and others v. Mala Banerjee (2015) 7 SCC 698.
(2.) Brief facts as pleaded in the writ petition are as under.
(3.) Two petitioners are share holders of M/s Dwarikesh Sugar Industries Limited (hereinafter referred to as "Sugar Company") Sugar Company is apparently engaged in the business of production and sale of white crystal sugar by Vacuum Pan Process. Molasses is obtained by Sugar company as a by product. A Sugar Industry Promotion Policy, 2004 (hereinafter referred to "SIPP, 2004") was notified by State Government of U.P. on 24.08.2004 inviting investment for setting up Sugar Industries in the State of U.P. offering certain concessions, exemptions and incentives to prospective Entrepreneurs. Vide Government Order dated 14.11.2006, SIPP, 2004 was made effective upto 31.03.2005. Petitioner's Sugar Company took a decision in the Board's meeting to invest heavily for establishing new Sugar Units along with Distillery and Co-generation Plants so as to avail benefits under SIPP, 2004. Some of the benefits and incentives offered under SIPP, 2004 which increased lure of petitioner's Sugar Company for investment in new units are as under: Exemptions: (i) Uttar Pradesh Trade Tax/ Central Sales Tax on sale of Molasses. (ii) Zero rate of Administrative charges on Molasses. (iii) Entry Tax on sale of Non-Levy Sugar. (iv) Purchase Tax on Sugarcane. (v) Registration charges on land. (vi) Stamp duty on land. Reimbursements: (i) Society Commission on purchase of cane. (ii) Sugar Transportation. (iii) Sugarcane Transportation. (iv) 10% Capital Subsidy (one-time);