Following the verified complaints of offense and irregularities, the development permissions given to disputed Malwa Vanaspati and Chemicals Private Limited for building the factory was canceled. The permissions were given by the Town and Country Planning Department. In this entire project a sitting MLA of the city is allegedly directly involved.

The defunct factory is located in Bhagirathpura Industrial area close to Laxmibai Nagar Railway Station. It is wrangled in disputes for the last few years. Even the Income Tax Department conducted the search operations on certain individuals involved in the land of the factory. Out of a total area of 11.484 hectares, on 9.584 hectares permission was revoked in view of the violation of the conditions imposed in the development permit. In this regard, Joint Director, Town and Country Investment Office have issued the order. On December 7, 2018, a conditional development permit was issued for the factory use on 9.584 ha. land. Permission was unsubstantiated as per condition Number 8 of the development license granted in this regard. Also, in the said permission, it was said that the sale of plots of the land demarcated as per condition number 16 will not be valid and only the built-up area can be sold and public parking on the land and the Minimum Open Space sales will be restricted.

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