UP cancels 944 hectares of land from power companies after 15-year default

The Uttar Pradesh government has cancelled the land allocation of 944.029 hectares to two power companies in Kanpur Dehat district after they failed to establish thermal power plants for 15 years and illegally mortgaged the government land with banks. The decision, taken under the state's zero-tolerance policy against crime and corruption, was finalized on August 25, 2026, after the companies failed to respond to a show-cause notice issued on May 25, 2026.

Additional Chief Secretary Dr. Ashish Kumar Goyal issued the final order following the Governor's approval, directing the District Magistrate to immediately register the land back in government records. The land will now be recorded directly under the Uttar Pradesh government and the Energy Department. The action affects two companies: Messers Lanco Anpara Power Limited, which had been allocated 375.378 hectares mortgaged with Canera Bank and Punjab National Bank, and Messers Himawat Power Private Limited, which held 568.651 hectares mortgaged with IDBI Bank.

The controversy dates back to June 28, 2011, when the Energy Department signed agreements with both companies to set up power plants in various villages of Bhognipur tehsil in Kanpur Dehat. According to the agreement terms, construction was mandatory within three years of taking possession. However, even after 15 years, no construction work was initiated at the site. More seriously, the companies violated their contracts by mortgaging the government land with banks without state permission, thereby gaining unauthorized financial benefits.

When the government issued a 15-day show-cause notice on May 25, 2026, both companies failed to respond or provide satisfactory explanations. Following this non-compliance and the proven fraud, the state government revoked the allocation and ordered the complete transfer of land back to state ownership, marking a significant action against corporate malfeasance in public land deals.