SC rejects Hindustan Motors plea against Bengal taking back 395 acres of land
This story was originally published at 15:35 IST on 16 July 2025
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--SC junks Hindustan Motor plea vs Bengal's resumption of 395 acres of land
NEW DELHI – Rejecting a plea by Hindustan Motors Ltd., the Supreme Court Wednesday upheld the West Bengal government's resumption of 395 acres of land under Section 6(3) of the West Bengal Estates Acquisition Act, 1953. The land, which was earlier transferred and conveyed to Hindustan Motors, was taken back by the state government in 2022 through "resumption" as it was not being used by the company and was unproductive.
The apex court said it did not find any grounds to interfere with the order of the Calcutta High Court, which had also upheld the state government's decision. Earlier this month, Hindustan Motors had said the government had "unlawfully" taken possession of its plant in Hooghly district, where the land was located, without notice, though the matter was pending before the Supreme Court.
Hindustan Motors had stopped production at its Uttarpara factory in 2014, while the state government took back 395 acres by an order in 2022. Earlier in 2023, West Bengal's Chief Minister Mamata Banerjee had announced that the state faces a scarcity of land for industry and had decided to take back industrial land lying unused to allot it to new entrepreneurs.
After taking back the land, the government had given about 40 acres at Mouza to Titagarh Rail Systems Ltd. on a 99-year lease for a consideration of INR 1.27 billion. Titagarh Rail Systems had said the strategic land parcel would facilitate the establishment of additional production infrastructure and dedicated areas for forming, testing, and commissioning Metro coaches and Vande Bharat trains.
Wednesday, shares of Hindustan Motors ended 3.3% lower at INR 27 on the National Stock Exchange, while shares of Titagarh Rail Systems ended 1.2% higher at INR 953.55.
Reported by Surya Tripathi
Edited by Rajeev Pai
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