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Business Standard
16-07-2025
- Automotive
- Business Standard
SC upholds West Bengal's resumption of Hindustan Motors' factory land
Supreme Court dismisses Hindustan Motors' plea against West Bengal's takeover of 395 acres in Uttarpara, ending a legal dispute dating back to 2022 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.
Hindustan Times
16-07-2025
- Automotive
- Hindustan Times
Hindustan Motors alleges WB govt seized closed plant unlawfully; state says unutilised land taken back
The iconic Yellow Taxi of Kolkata are HM Ambassador models, built by Hindustan Motors. (AFP) Check Offers Hindustan Motors Ltd., the manufacturer of the once popular and iconic HM Ambassador, on Tuesday alleged that the West Bengal government has unlawfully taken possession of the company's plant in the Hooghly district without notice, despite the matter being pending in the Supreme Court. Responding to the accusation, the state government has said that it had taken back 395 acres of land in 2022 from the company as the land remained unutilised. Hindustan Motors' Uttarpara plant, where the iconic HM Ambassador cars were once manufactured, has been at the centre of a prolonged legal tussle with the state government over land rights and resumption issues. Responding to the allegation, a land official department official of the WB government has told PTI that the company was given ample opportunities to demonstrate its use, which it failed to do. The company, in a regulatory filing, said that on July 11, around 11 AM, government officials, accompanied by land department authorities, police personnel and others, entered the company's premises and wrongfully seized its property, including documents, machinery, equipment, licensed weapons and even the customs warehouse. 'The suo motu action taken by the concerned department of the Government of West Bengal, despite our Special Leave Petition pending before the Hon'ble Supreme Court of India, has caused considerable prejudice to our challenge," the company said in its regulatory filing. Hindustan Motors has said that it has submitted a formal complaint and protest to the Special Secretary of the state Land and Land Reforms Department, both via email and in physical form, on July 11 and again on July 14. The company claimed that the state government earlier agreed not to take any coercive action regarding the Uttarpara premises until the Supreme Court hears the matter, which is listed for July 22. The company also expressed surprise over the state's sudden move despite these discussions. Hindustan Motors' Uttarpara plant, which was once home to the iconic Ambassador car, has been at the centre of a prolonged legal tussle with the state government over land rights and resumption issues. The OEM ceased production at the Uttarpara plant in West Bengal in May 2014, while the state government took back 395 acres given to the company by an order dated November 9, 2022. In Uttarpara, the homegrown automaker had around 720 acres, of which a land parcel of 314 acres was sold to Sriram group in 2009 at ₹ 285 crore for real estate development. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 16 Jul 2025, 07:28 am IST
