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Arbitration tribunal awards Tata ₹766 crore compensation

Oct 31, 2023

By: BlinkX Research Team

On Monday, a three-member Arbitral Tribunal unanimously decided to pay Tata Motors for its investment in the now-closed Singur facility in West Bengal with ₹766 crore plus interest. 

“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 said in an exchange filing.

Ratan Tata unveiled the Nano automobile project at Singur on May 18, 2006, the same day that West Bengal chief minister Buddhadeb Bhattacharjee took the oath of office for a second term. Farmers' protests against the "forcible" seizure of land for the Tata project, however, caused problems for the project.

The TMC, led by Mamata Banerjee, won handily in the 2011 state assembly election. Banerjee announced the ordinance to reclaim Singur property shortly after taking office. On June 22 that year, Tata Motors challenged the Singur Act in the Calcutta high court seeking stay on government order. After the Calcutta high court refused to grant stay, Tata had moved the Supreme Court.