Hindustan Motors claims Bengal govt seized closed plant unlawfully; state says unutilised land taken back

Kolkata: Hindustan Motors Ltd on Tuesday alleged that the West Bengal government unlawfully took possession of its plant in Hooghly district without notice, though the matter is pending in the Supreme Court.

Responding to the accusation, a senior official said the state government had taken back 395 acres of land in 2022 from the sick company as it remained unutilised.

The company was given ample opportunities to demonstrate its use, which it failed to do, the land department official told PTI.

Hindustan Motors’ Uttarpara plant, where the iconic Ambassador cars were manufactured, has been at the centre of a prolonged legal tussle with the state government over land rights and resumption issues.

In a regulatory filing, Hindustan Motors 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.

Hindustan Motors said 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 ceased production at the Uttarpara factory 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, Hindustan Motors had around 720 acres, of which a land parcel of 314 acres was sold to Sriram group in 2009 at Rs 285 crore for real estate development.

Chief Minister Mamata Banerjee earlier announced that her government faced a scarcity of land for industry and decided to take back industrial land lying unutilised to allot it to new entrepreneurs.

"The land was earlier held by Hindustan Motors, but the government resumed it as it was not utilised and held unproductive," a state land department official said.

The Calcutta High Court in May dismissed the writ petition filed by Hindustan Motors Ltd, which had challenged the order of the West Bengal Land Reforms and Tenancy Tribunal upholding the State’s resumption of 395 acres of land under Section 6(3) of the West Bengal Estates Acquisition Act, 1953.

The court ruled that the petitioners were not entitled to any relief and affirmed the state government’s authority to resume the land. A subsequent request for a stay on the judgment was also rejected.

When contacted, an official from C K Birla group expressed wonder at the development but refused to comment.

The state government had entered into a 99-year lease agreement with Titagarh Rail Systems Ltd for approximately 40 acres of contiguous land at Mouza Kotrung and Mouza Bhadrakali, Uttarpara, at a consideration of Rs 126.63 crore.

Titagarh had said this strategic land parcel will facilitate the establishment of additional production infrastructure and dedicated areas for forming, testing, and commissioning of Metro coaches and Vande Bharat trains. This will include a test track for conducting dynamic and running tests before delivery.

The newly acquired land is contiguous to Titagarh's existing 34-acre Uttarpara facility and is considered critical for the company’s plans to expand its passenger rolling stock business for metro coaches, Vande Bharat trains and specialised rolling stock for the Indian defence sector.

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.