Tata Motors Ltd. announced that an arbitration panel has decided in its favour to recoup Rs. 766 crores, interest included, from the West Bengal Industrial Development Corp. for the Singur-Nano project, which the company was forced to abandon.

“In respect of the arbitration proceedings between Tata Motors Limited (TML) and West Bengal Industrial Development Corporation Limited (WBIDC), in relation to TML’s claim of compensation from WBIDC under various heads, on account of the loss of capital investments, with regard to the automobile manufacturing facility at Singur (West Bengal), this is to inform that the aforesaid pending Arbitral proceedings before a three-member Arbitral Tribunal have now been finally disposed of by a unanimous Award dated October 30, 2023, in favour of TML,” Tata said in an exchange filing.

In an exchange filing on Monday, the automaker stated that a three-member arbitral tribunal had unanimously decided that Tata Motors is entitled to reimbursed Rs 765.8 crore, plus interest at the rate of 11% annually from September 1, 2016, until the actual recovery of the money from WBIDC. The corporation is eligible to receive reimbursement for up to Rs 1 crore for legal fees.

The company had claimed compensation from WBIDC on account of the loss of capital investments made to set up an automobile manufacturing facility at Singur. Following the award, the arbitral proceedings have come to an end, the statement said.

On May 18, 2006, Ratan Tata announced the Nano car project at Singur on the day coinciding with then West Bengal chief minister Buddhadeb Bhattacharjee taking oath for the second term. However, the project encountered difficulties when farmers organised demonstrations against the "forcible" acquisition of land for the Tata project.

Mamata Banerjee, who was the opposition leader at that time, undertook an indefinite hunger strike on December 3 of that year against the project. She called off her protest following appeals by then President APJ Abdul Kalam and then Prime Minister Dr. Manmohan Singh.

The Singur land transaction lease was signed on March 9, 2007, between Tata and the Left government in power at the time. By May 24, the talks between the Left regime and the TMC had failed. Tata stated that Nano would be rolled out by October on February 15, 2008. Tata stopped operations on September 3 and announced that it was relocating its Nano operations from West Bengal to Gujarat one month later.

In 2011, Mamata Banerjee-led TMC swept the state assembly election. Banerjee announced the ordinance to reclaim Singur property shortly after taking office. Tata Motors filed a high court challenge to the Singur Act on June 22 of that year, requesting a stay of the government order. Tata had petitioned the Supreme Court after the Calcutta High Court turned down a stay request.

Image source: Reuters