Khadim India Ltd., the leading shoe manufacturer of eastern India with an annual turnover of Rs 200 crore, has threatened to take out a project to Faridabad in Haryana. A feud between the commerce and industries department and land and land reforms department stood in the way of the company mortgaging its land at Bantala and getting loan from the banks.

The company bought a 5-acre plot from M. L. Dalmiya & Co, developer of Bantala Leather Complex, to set up a central warehouse there. However, when they tried to mortgage the land to get a bank loan and went to the commerce and industries department for the permission, they were refused. The Dalmiyas took the land at Bantala from the government on lease and that is why the company needed the permission of the state.