Tata Motors wins Singur verdict, to recover Rs 766 crore with interest

Tata Motors today announced that it has won the Singur automobile manufacturing facility case against West Bengal Industrial Development Corporation and will recover a sum of Rs 766 crore with interest.

The case pertained to a compensation claim by Tata Motors Ltd (TML) from West Bengal Industrial Development Corporation Ltd (WBIDC) under various heads, on account of the loss of capital investments, with regard to the Singur facility.

"... this is to inform that the aforesaid pending arbitral proceedings before a three-member arbitral tribunal has now been finally disposed of by a unanimous award dated October 30, 2023, in favour of TML whereby the claimant (TML) has been held to be entitled to recover from the respondent (WBIDC) a sum of Rs 765.78 crore with interest thereon at 11% per annum from September 1, 2016, till actual recovery thereof," a BSE filing said.

"The claimant (TML) has also been held to be entitled to recover from the respondent (WBIDC) a sum of Rs 1 crore towards cost of the proceedings. With the making of the final arbitral award as mentioned above, the arbitral proceedings have come to an end," it added.

In 2006, the erstwhile Left Front government acquired nearly 1,000 acres of land in Singur, Hooghly, and handed it over to Tata Motors to build a manufacturing facility for the Tata Nano.

However, the land acquisition was opposed by the then opposition leader and Trinamool Congress chief Mamata Banerjee, the current Chief Minister of West Bengal.

Tata Motors eventually had to shelve the Singur project. The company moved to Gujarat and set up a plant in Sanand for manufacturing the Tata Nano.