The government had earlier issued two notices to Patanjali for the delay in paper works. Sources close to Ramdev said Patanjali didn't get desired cooperation from the state government for this project.
However, the government has given time till June 15 but Patanjali is pulling out of the project because of its "disappointing" attitude, the sources added.
The Hairdwar-based company had proposed to invest up to Rs 6,000 crore to set up a plant in 425 acres of land at YEIDA to cater the domestic and export markets through its step-down firm Patanjali Food & Herbal Park.
Reacting to the development, Patanjali Ayurved Managing Director Acharya Balkrishna blamed the Yogi Adityanath government's "indifferent attitude" for the decision.
"Received information about scrapping the Mega Food Park project in Great Noida, which was approved by the Central government. The project would have brought prosperity to the land of Lord Rama and Krishna. But due to the state government's indifference, this will remain an unfulfilled dream," he tweeted.
"We are cancelling the project as we did not get required clearances from the UP state government," Balkrishna told PTI.
The company now plans to shift the project to some other state, he said without disclosing further details.
Citing the reason for pulling out of the state, he said, "We did not get any cooperation from the state government for this project. We have waited for long time for the clearances but could not get from the state government. Now we have decided to shift the project."
When contacted Food Processing Secretary J P Meena told PTI:" Patanjali was given four months time to meet the conditions required to get the final approval. There are four to five conditions, including land and bank loans, which any party that wants to set up mega food park has to fulfil."
Meena further said, "We have not cancelled the project. We have given one month extension to Patanjali... they have to meet the condition. In case, Patanjali does not meet the condition, we have no choice but to cancel. We have done it earlier in many projects."
(With PTI inputs)