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SC upholds West Bengal's resumption of Hindustan Motors' factory land
Ishita Ayan Dutt Bhavini Mishra New Delhi
The Supreme Court on Wednesday dismissed a special leave petition (SLP) filed by Hindustan Motors, affirming the validity of the West Bengal government's resumption of 395 acres of land allotted to the company at Uttarpara, Hooghly.
Debanjan Mandal, managing partner, Fox & Mandal, said this marks the culmination of a prolonged legal battle, during which the state successfully demonstrated that the land had remained unutilised for several decades and that its resumption was in public interest and in accordance with law.
Fox & Mandal appeared on behalf of the state of West Bengal.
When contacted, Uttam Bose, director of Hindustan Motors, responded 'no comments' via text.
The Hindustan Motors' Uttarpara plant, which used to roll out the iconic Ambassador car, had declared 'suspension of work' in 2014, which continued.
The legal wrangle between the state and the company goes back to 2022. On July 6, 2022, the West Bengal government had expressed its intention to resume the 395 acres of land.
By an order dated November 9, 2022, the state resumed the 395 acres, which was challenged by the company and set off legal proceedings.
Earlier, the Land Tribunal had upheld the state's decision to resume the land under the West Bengal Estates Acquisition Act, 1953. This was challenged by Hindustan Motors before the Calcutta High Court, which, by its judgment dated May 22, 2025, rejected the appeal and confirmed the state's right to resume the unused land.
Earlier in the week, the West Bengal Cabinet approved the transfer of a 40-acre parcel to Titagarh Rail Systems (TRSL). This was part of Hindustan Motors' Uttarpara land and prompted a sharp reaction from the company.
In a filing with the stock exchanges on July 15, Hindustan Motors said that on July 11, 2025, at around 11.00 am, officials including the additional district magistrate, Hooghly, accompanied by the BL & LRO, police personnel and several others, without prior intimation, forcibly entered the factory premises and trespassed, intimidated and wrongfully seized the property at the company's premises situated at Hindmotor, Uttarpara.
'The suo motu action taken by the concerned department of the government of West Bengal, despite our special leave petition listed and pending for hearing before the Hon'ble Supreme Court of India, has caused considerable prejudice to our challenge,' it mentioned.
However, Wednesday's development in the apex court marks the end of a long road for the country's first carmaker, Hindustan Motors, at Uttarpara — which goes back to 1946.
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