Bengal Singur Tata Plant : Bengal Govt ordered to pay a compensation of Rs 766 crore to Tata Group

Case of opposition against Tata Motors in Singur, Bengal

(Credits:ET Now)

Mumbai – Tata Motors, a subsidiary of the Tata Group, will get an investment compensation of Rs 766 crore in the Singur land dispute in Bengal. The conflict emerged in 2008 when the then-opposition party, Trinamool Congress, vehemently opposed Tata Motors’ proposed plant in Singur. Subsequently, Chief Minister Mamata Banerjee, upon assuming power, passed legislation against it. In response, Tata Motors took the matter to Court, seeking compensation for their investment. The Court has now ruled in favour of Tata Motors, ordering the West Bengal Industrial Development Corporation which falls under the State Government, to provide compensation amounting to Rs 765.78 crore, along with an 11% annual interest.

(Credits:NDTV)

What is the issue ?

Year 2008 : Then Communist Government granted approval for the establishment of Tata Motors’ Nano Plant. However, as the project commenced, Mamata Banerjee, the leader of the opposition, vehemently opposed it, prompting Ratan Tata to relocate the project out of Bengal. This relocation incurred substantial losses for the company. Subsequently, when Mamata Banerjee assumed the position of Chief Minister, she enacted legislation in this matter.

June 2011 : Tata Motors contested the legislation enacted by the State Government, which resulted in the expropriation of land from the company. Then, in June 2012, the Calcutta High Court ruled that the Singur Act was unconstitutional and reinstated the establishment’s rights under the Land Tenancy Agreement.

August 2011 : The State Government moved to Supreme Court.

August 2016 : Supreme Court rendered a verdict in favour of Tata Motors, declaring the Government’s land acquisition as unauthorised and ordering the return of the land to its rightful owners.

After August 2016 : Tata Motors pursued damages based on a clause within the land lease agreement. The company brought the case to court. Now, after seven years, Tata Motors has emerged victorious in this legal battle.