Singur, Oct 30: Tata Motors has emerged victorious in a longstanding dispute case against the West Bengal Industrial Development Corporation Limited (WBIDC) regarding the now-defunct Singur manufacturing unit. Following this victory, the company is entitled to recover ₹766 crore from WBIDC.
In addition to the claimed amount, the arbitral tribunal has ruled that WBIDC must pay interest on the claimed amount at an 11% rate from September 2016 until the actual recovery is made.
Tata Motors’ shares closed 1.71% lower at ₹460 per share on the Bombay Stock Exchange (BSE) on Monday.
The company issued a statement in which it said, “The aforesaid pending arbitral proceedings before a three-member Arbitral Tribunal have now been finally disposed of by a unanimous award in favor of Tata Motors Limited (TML). TML has been held to be entitled to recover ₹765.78 crores with interest thereon at 11% per annum from September 1, 2016, until actual recovery. The Claimant (TML) is also entitled to recover ₹1 crore from WBIDC towards the cost of the proceedings.”
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The Arbitral Tribunal, comprised of three members, delivered its decision in favor of Tata Motors on October 30, granting the company the right to recover ₹765.78 crore in addition to an extra sum. Tata Motors is also eligible to receive ₹1 crore from WBIDC to cover the costs of the proceedings.
Previously, the automaker had acquired around 1,000 acres of farmland from the West Bengal Government for the construction of a manufacturing plant. However, it faced strong protests from political leaders and local farmers, which prompted Tata Motors to alter its plans and relocate to another site. Nevertheless, the company had already invested in the original location. Eventually, Tata Motors transferred its manufacturing unit to Sanand in Gujarat.
