Kolkata, Oct 30 (SocialNews.XYZ) Tata Motors Limited (TML) on Monday informed that the National Stock Exchange (NSE) that a three-member Arbitral Tribunal has directed the West Bengal government to pay a compensation of Rs 765.78 crore in additional to an interest at the rate of 11 per cent accrued on it since September 2016 as compensation to the company for the closure of its Nano car project in Singur.
“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 has now been finally disposed of by a unanimous Award dated October 30, 2023 in favour of TML," Tata Motors said in an exchange filing.
However, according to legal experts, the state government has the option of challenging the tribunal order at a higher court.
The officials of the WBIDC have claimed that till Monday evening, they have not received any information in this matter.
There was no reaction from the ruling Trinamool Congress till the time of filing of this report.
To recall, after coming to power with a thumping majority in 2006, the then Buddhadeb Bhattacharjee-led Left Front government had announced the Nano project at Singur by TML. Accordingly, the work for setting up of the factory started there after the state government finished the process of land acquisition for the project.
However, the problem started after a small section of the land-owners refused to accept the compensation cheques and started agitating against the land acquisition.
The Trinamool Congress led by Mamata Banerjee, the principal opposition party at the time, started a massive agitation at Singur against the land acquisition.
In face of the agitation, Tata Group Chairman Ratan Tata finally withdrew from Singur and Sanand in Gujarat became the new site for the Nano project.
After coming to power in 2011, the first decision of the Mamata Banerjee-led Cabinet was to promulgate a new law for return of land at Singur to all the land-owners.
Political observers feel that the development has come as a major setback for the West Bengal government just before the Bengal Global Business Summit, the annual event of the state government to showcase Bengal as an ideal investment destination.
While the Trinamool has remained silent so far over the tribunal order, the opposition parties have attacked the state government on the issue.
“This is a penalty that the Trinamool Congress will have to pay for ruining the dreams of thousands of educated youth in the state. I wonder how the state government, which is already saddled with huge accumulated debt, will pay this penalty,” said CPI(M) state Secretary and politburo member, Md Salim.