Instead, Cadbury added a second floor to its existing Baddi plant in 2009, the former executive said.

WSJ: India Says Cadbury Used Phantom Factory to Avoid Taxes

"We have been the stewards of this land and coastline for centuries, " says Mohammed Baddi, member of the Save Lamu coalition and a legal petitioner.

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Since at least 2005, the company has been operating a plant in the industrial town of Baddi that produces the cocoa-based drink Bournvita and Cadbury Dairy Milk, a brand of milk chocolate.

WSJ: India Says Cadbury Used Phantom Factory to Avoid Taxes