Setback to Hindustan Motors, SC upholds West Bengal govt's decision on land resumption

In a setback to Hindustan Motors, the makers of iconic Ambassador sedan, the Supreme Court on Wednesday upheld the West Bengal government's decision's for resumption of 395 acre of land under the West Bengal Estates Acquisition Act, 1953.

Kolkata-based Hindustan Motors had stopped production of its legendary Ambassador sedan at its Uttarpara factory in Hooghly district in 2014. The state government took back 395 acre in 2022 through "resumption" from the company, which had been allegedly declared financially sick and its land was lying unutilised and unproductive.

A Bench led by Justice BV Nagarathna refused to interfere with the Calcutta High Court decision upholding the state government's stand.

The company alleged that the West Bengal government unlawfully took possession of its plant without notice.

The Calcutta High Court in May dismissed the Hindustan Motors’ petition challenging the order of the West Bengal Land Reforms and Tenancy Tribunal upholding the State’s resumption of 395 acre of land under Section 6(3) of the West Bengal Estates Acquisition Act, 1953.

The Mamata Banerjee government had earlier announced that the state faced a scarcity of land for industry and had decided to take back industrial land lying unused to allot it to new entrepreneurs.

After taking back the land from Hindustan Motors, the government has given about 40 acre at Mouza to Titagarh Rail Systems on a 99-year lease for a consideration of Rs 127 crore to facilitate the establishment of additional production infrastructure and dedicated areas for forming, testing, and commissioning Metro coaches and Vande Bharat trains.