Kolkata: West Bengal government hit back in the Singur Nano Plant case. The court ordered the West Bengal Industrial Development Corporation to pay Rs 766 crore as compensation for abandoning the project. The court ruled in favor of Tata Group in the case.
In 2008, Tata Motors had to pull out of the Singur plant it had set up to manufacture the ‘Nano’ car following a strong struggle by the Trinamool Congress led by then opposition leader Mamata Banerjee. The West Bengal government had allotted about 1000 acres of agricultural land to Tata Motors for building the manufacturing plant. But following the political upheavals, Tata abandoned the project and shifted the manufacturing unit to Sanand in Gujarat.
But the company had already spent a good amount on the project in Singur. Following this, the Tata Group proceeded with the case. In relation to the arbitration proceedings between Tata Motors Limited (TML) and WBIDC, a three-judge arbitral tribunal has awarded an award in favor of Tata. 766 crores and interest on it from the West Bengal Industrial Development Corporation as per the estimates of the loss incurred by the company. The company said that the arbitration proceedings have come to an end with the final tribunal verdict.
