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India court rules West Bengal Tata land move is legal India court rules West Bengal Tata land move is legal
(40 minutes later)
A court in India has ruled that the West Bengal state government acted legally in reclaiming land where Tata Motors wanted to build a car factory. A court in India has ruled that West Bengal's state government acted legally in reclaiming land where Tata Motors wanted to build its low-cost Nano car.
The 1,000 acres plot of land was acquired in 2006 by the state's former communist government for the company to build its low cost Nano car. The 1,000-acre plot of land was acquired in 2006 by the state's former communist government and leased to the company for 99 years.
The new government of West Bengal took back the land in June to return it to farmers after they protested. The new state government took back the land in June to return it to farmers.
Tata had challenged the government over its measures to reclaim the land. Tata challenged the move in the high court in Calcutta and is expected to take its appeal to the Supreme Court.
The company is now expected to challenge the order in Supreme Court after the Calcutta High Court made its ruling on Wednesday.
The BBC's Rahul Tandon in Calcutta says that the case has been closely followed across India, which needs to free up land for industry if it wants to continue its economic growth.The BBC's Rahul Tandon in Calcutta says that the case has been closely followed across India, which needs to free up land for industry if it wants to continue its economic growth.
But many farmers say that cannot happen at their expense. But many farmers say that cannot happen at their expense, our correspondent says.
The court ordered Tata Motors to remove all equipment from the factory at Singur, near Calcutta, in two months. The high court ordered Tata Motors to remove all equipment from the factory at Singur, near Calcutta, within two months.
It ruled that the company was entitled to ask for compensation if any needed to be paid.It ruled that the company was entitled to ask for compensation if any needed to be paid.
After months of violent protests, the company pulled out of West Bengal last year. After months of violent protests, the company pulled out of West Bengal last year and shifted production to a new plant in the state of Gujarat.
Tata Motors then went on to set up a new plant in the state of Gujarat. In May, the Trinamul Congress party led by Mamata Banerjee trounced West Bengal's long-serving communist government on the promise that she would restore the land to the farmers.
In May, the regional Trinamul Congress party led by Mamata Banerjee won a landslide victory in West Bengal against the state's long-serving communist government on the promise that she would restore the land to the farmers.
In June, West Bengal passed a law that would allow its return to them.In June, West Bengal passed a law that would allow its return to them.
The government started handing back the land, a move which was challenged in the Supreme Court. The state government started handing back the land, a move which was challenged in the Supreme Court. It directed the government to suspend the return of land until the high court in Calcutta had ruled on the matter.
The court directed the government to suspend the return of land until the high court in Calcutta ruled on the matter.