Tata secures Rs 766 crore compensation in Singur plant case

Tata Motors had planned to manufacture the Nano at its Singur plant. However, the factory was shut down in 2008, following protests against land acquisition.

Tata Motors has secured a compensation of Rs 766 crore plus interest for their investments in the now-defunct Singur plant in West Bengal.

The arbitration proceedings over the dispute between Tata Motors Limited (TML) and the West Bengal Industrial Development Corporation Limited (WBIDC) were recently concluded. In a unanimous ruling, the court stated that the automaker was entitled to recover a sum of Rs 765.78 crore and an additional 11% per annum interest, commencing from September 1, 2016, from WBIDC. TML is also entitled to recover Rs 1 crore towards the cost of proceedings from WBIDC.

Tata Motors had planned to manufacture the Nano at its Singur plant. However, the factory was shut down in 2008, following protests against land acquisition. Subsequently, Tata Motors decided to relocate its manufacturing unit to Sanand, Gujarat.

Official statement:

“The pending arbitral proceedings before a three-member arbitral tribunal has now been finally disposed of by a unanimous award in favour of Tata Motors Ltd, whereby the claimant has been held to be entitled to recover from the respondent (WBIDC) a sum of ₹765.78 crore with interest thereon at 11% per annum from September 1, 2016, till actual recovery thereof. The claimant has also been held to be entitled to recover from the respondent a sum of ₹1 crore towards the cost of the proceedings."