Hindustan Motors, the maker of the iconic Ambassador, has alleged that the West Bengal government has unlawfully taken possession of its manufacturing plant. Based out of Uttarpara in Hooghly district, this plant has stood non-functional since the production of Ambassador stopped in 2014.
The company has been at the centre of a prolonged legal tussle with the state government over land rights and resumption issues and the matter is still pending in the Supreme Court. A senior official from the state’s land department told PTI that the land was taken back after Hindustan Motors failed to make productive use of the site, despite being given multiple opportunities.
“The land remained unutilised, and hence, action was taken as per due process,” the official clarified, responding to the company’s accusation of wrongful seizure. In a regulatory filing, Hindustan Motors revealed that on July 11, government officials — accompanied by police and land department authorities — entered its premises and allegedly seized documents, equipment, licensed arms, and property including the customs warehouse.
The company termed the action “unauthorised” and claimed it caused significant prejudice, especially since a Special Leave Petition (SLP) is pending before the Supreme Court. Hindustan Motors contended that the state had previously agreed not to take coercive action until the matter was heard by the apex court, with the next hearing scheduled for July 22. The company expressed shock at the sudden move and said it had submitted formal protests to the Special Secretary of the Land and Land Reforms Department on both July 11 and July 14.
Production at the Uttarpara facility ceased in May 2014. Spread across 720 acres, originally held by Hindustan Motors, 314 acres were sold to the Sriram Group in 2009 for real estate development. The state reclaimed 395 acres through a government order dated November 9, 2022, aiming to reallocate unproductive industrial land for new investments.
High Court Upholds State’s Action
The Calcutta High Court dismissed a writ petition filed by Hindustan Motors in May this year. The company had challenged the order of the West Bengal Land Reforms and Tenancy Tribunal, which upheld the state’s right to reclaim the land under Section 6(3) of the West Bengal Estates Acquisition Act, 1953. The court denied the petitioner any relief and refused to grant a stay on the judgment.
Chief Minister Mamata Banerjee has publicly stated that due to limited availability of industrial land, the state would reclaim underutilised plots to allocate them to entrepreneurs with active investment plans. In alignment with this policy, the government has leased approximately 40 acres from the reclaimed land to Titagarh Rail Systems Ltd for Rs 126.63 crore.
This land will be used to expand infrastructure for the manufacturing and testing of Metro coaches and Vande Bharat trains. The new parcel is adjacent to Titagarh’s existing 34-acre facility and is considered critical for the company’s expansion into defence and passenger rail segments.
With inputs from PTI
