Tata Loses Singur Battle: Asked To Shut Shop

Published: Wednesday, September 28, 2011, 18:19 [IST]

Tata Motors suffered a shock today after the Kolkota High Court ruled against it in its plea to repeal the Singur Land Bill. The court in its ruling has said that the West Bengal has every right to repossess land in Singur as Tata Motors had not initiated any socio economic developments at the site. Further the court has asked Tata Motors to Dismantle all equipment and empty the land within the next two months. It has also said The Indian carmaker can seek compensation for the land from a District Court.

The ruling from the Kolkota high court is a result of a long standing legal battle between Tata Motors and the West Bengal Government. The newly elected government headed by Mamata Banerjee decided to repossess land at Singur which the previous government had given to Tata Motors to build a car manufacturing plant for the Nano.

Tata Motors was forced to move its Nano plant to Gujarat's Sanand after violent protests by farmers. The carmaker had stated it still wanted to do something in the disputed Singur land when the government had proposed the land will be returned to its previous owners.

Tata Motors has only responded by stating it will make a statement after having a close look at the ruling and will then consider further action. The carmaker is likely to approach the Supreme Court.

Any ensuing legal battle will only be a fight for ego rather than any positive development. Tata Motors already has a fully functional plant for the Tata Nano in Sanand, Gujarat and the demand for the small car is not encouraging. It is highly unlikely that Tata Motors will be opening a second Nano plant at current sales levels. We have already reported that Tata is already considering to build other cars in its plant in Sanand.

Article Published On: Wednesday, September 28, 2011, 18:03 [IST]

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