By the Court.—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 28.1.2013. 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 24.8.2004 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 31.3.2005. Petitioner’s Sugar Company took a decision in the Board’s meeting to invest heavily for establishing new Sugar Units alongwith 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)

4. Eligibility criteria for availing benefit under SIPP, 2004, provided Policy, read as under:

Investment Area:

For investment to be made in new sugar mill or expansion of existing mill and up of down-stream industries (distillery and Co-Gen, etc.)

Investment quantum and period for availing the benefits:

For investment involving not less that Rs. 350 crores, benefits to be available for five years, similarly, where investment involves not less than Rs. 500 crores, benefits to be available for ten years; the benefits in both case were allowed subject to fulfillment of the prescribed conditions, i.e., from the date of commencement of commercial production or the date of eligibility, whichever, is later.

Period for implementation of the project under the Sugar Policy:

The benefits under the Sugar Industry Promotion Policy-2004 are available only for those companies/units, who implement/commission their projects, commence commercial production within the period from 1st April 2004 to 31st March 2007 and obtain the certificate of eligibility from the Government. (Later on, in view of success of Policy, on 14th November 2006, the above period was extended for further period of one year being up to 31st March 2008). Hence, the period of implementation is 1st April 2004 to 31st March 2008. (emphasis added)

5. It was also provided in SIPP, 2004 that any Group or Industry if undertakes an expansion of existing Sugar units or sets up a new Sugar unit or establ