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WB Government to take legal steps challenging the verdict of the Arbitration Tribunal in Tata vs WBIDC Dispute
The West Bengal state government has decided to take legal steps challenging the verdict of the Arbitration Tribunal on Monday announcing a compensation of Rs. 766 crores to Tata. After receiving a copy of the verdict, Chief Secretary H. K. Dwivedi spoke to advocates, following which a decision to take legal steps was taken.
A three-member Arbitration Tribunal on Monday announced a compensation of Rs. 765.78 crores plus 11% interest per annum since September 1, 2016, in favour of Tata, concluding the dispute between Tata Motors Limited (TML) and West Bengal Industrial Development Corporation (WBIDC). TML is also entitled to receive Rs. 1 crore in cost of proceedings.
The official statement from Tata read: “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 have now been finally disposed of by a unanimous Award dated October 30, 2023, in favour of TML.”
In May 2006, Ratan Tata announced his plans to set up the Tata Nano project in Singur, West Bengal, the same day then-Chief Minister Buddhadeb Bhattacharjee took oath for his second term. The project came to a standstill when some farmers protested against the ‘forcible’ acquisition of land for the project. Leader of Opposition Mamata Banerjee undertook a hunger strike on December 3 to protest against the project. Her protest was called off following pleas by then President APJ Abdul Kalam and Prime Minister Dr. Manmohan Singh.
A land deal lease was signed between Tata and the Government in March 2007, but talks between the Left Government and Opposition TMC failed in May that year. Tata announced a rollout on February 15, 2008, and suspended all works on September 3. In November 2008, Tata announced that it was migrating the project to Gujarat.
