A division bench comprising Justice P C Verma and Justice Vikas Jain dismissed the petition filed by some land owners challenging the state-owned Bihar Industrial Area Development Authority's decision to hand over the acquired land to the UB group for construction of a beer factory after the same was acquired for a sugar factory.
On March 15, the court had reserved its order after hearing arguments from the contending parties in the petition.
The state government has defended the land acquisition on the ground that it was its discretion to use acquired land for public purposes with an aim to ensure generation of employment and revenue.
The court had earlier stayed construction of the beer factory.