On Monday, an arbitration panel instructed the West Bengal Industrial Development Corporation (WBIDC) to compensate Tata Motors for the capital investments’ loss because of the suspension of the Nano manufacturing facility in Singur. Tata Motors, the automobile manufacturing company, was compelled to exit the town in southern Bengal after the protests by Mamta Banerjee alleging forced displacements.
Tata Motors expressed through an exchange filing on Monday that the arbitration panel proceedings’ conclusion lies in its favor. The car manufacturer was deemed eligible to retrieve an amount of Rs 765.78 crore with an 11 percent per annum interest from the WBIDC till the time of the actual recovery, and this had been decided with unanimous agreement.
This would actually be the time frame starting from September 1, 2016, when the apex court of the country called the acquisition of the land in Bengal as simply void and unconstitutional. The Supreme Court also instructed the WBIDC to pay an amount of Rs 1 crore to Tata Motors as legal charges (also known as the cost of proceedings).
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The legal dispute
It was in the year 2006 when West Bengal’s Left government allotted 1,000 acres of land to automobile manufacturer company, Tata Motors for the purpose of manufacturing the hatchback Nano in Singur. The land was allotted on a lease of 99 years. However, it was Mamata Banerjee who launched the Singur land movement citing forcible acquisition of the land and the concern over displacement of people.
In the year 2011, the Trinamool Congress government brought forward the Singur Land Rehabilitation & Development Act of 2011 which was passed by the Legislative Assembly. This is when the legal battle commenced as the Act was related to taking possession of the land which was leased out to the car manufacturing company. The Act also sought to give the land back to the owners who earlier refused the compensation that was given to them by the Left-front government. The Act further said that the remaining portion was to be used for the purpose of public interest and benefit of the State.
When the disruptions on the land site began, Tata Motors started contemplating a shift to a different site in 2008. This move was finalized in the month of October 2008.
The reaction of Tata Motors
The Singur Act was challenged by Tata Motors in June 2011 in the Calcutta High Court. Ever since then, Tata Motors claims that it has not been given “reasonable compensation” as the Act took their rights over the land as well.
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Source: tiengtrunghaato.edu.vn