In a recent development in the case involving Tata Motors and WBIDC, the arbitral tribunal has unanimously ruled in favor of Tata Motors regarding their claims related to the Singur manufacturing unit.
The tribunal’s ruling stipulates that the West Bengal Industrial Development Corporation (WBIDC) must make a significant payment of Rs 765.78 crore to Tata Motors, accompanied by an 11 percent interest rate on the awarded sum. Additionally, Tata Motors has asserted its right to seek an additional Rs 1 crore from WBIDC to cover the expenses incurred during the legal proceedings.
The dispute originated in October 2008 when Tata Motors was compelled to relocate its manufacturing plant from Singur in West Bengal to Sanand in Gujarat due to a land dispute.
Tata Motors initiated this legal action to seek compensation from WBIDC on various grounds, including losses associated with capital investments made in their automobile manufacturing facility in Singur. The plant was originally intended for the production of Nano cars.
“In relation to the arbitration proceedings between Tata Motors Limited (‘TML’) and West Bengal Industrial Development Corporation Limited (‘WBIDC’), concerning TML’s claim for compensation from WBIDC under various categories due to the loss of capital investments related to the automobile manufacturing facility in Singur (West Bengal), we would like to inform you that the pending arbitration proceedings before a three-member Arbitral Tribunal have now been conclusively resolved by a unanimous Award dated October 30, 2023, in favor of TML. As per the award, the claimant (TML) is entitled to recover a sum of Rs. 765.78 crore from the respondent (WBIDC) with interest at a rate of 11% per annum from September 1, 2016, until the actual recovery. The claimant (TML) is also entitled to recover Rs. 1 crore from the respondent (WBIDC) as the cost of the proceedings,” stated the company in a stock exchange filing.
Additionally, the automaker stated, “With the issuance of the final arbitral award as mentioned above, the arbitral proceedings have now concluded.”
In response to the tribunal’s ruling, the Trinamool Congress (TMC), currently in power in the state, has expressed that it does not consider this the “final verdict” and has emphasized that legal avenues remain open for the Mamata Banerjee-led government.