On October 30, Tata Motors said that it has received an arbitral verdict totaling Rs 766 crore, plus interest, as payment for its investment in the Singur facility, which has since been abandoned. There, Tata Motors was constructing the factory to produce the much-anticipated Tata Nano.
In an exchange filing, the company stated, “This is to inform that the aforesaid pending Arbitral proceedings before a three member Arbitral Tribunal have now been finally disposed of by a unanimous Award dated October 30, 2023 in favour of TML.” The arbitration proceedings, which concerned TML’s claim of compensation from WBIDC under various heads due to the loss of capital investments with regard to the automobile manufacturing facility at Singur (West Bengal), were ongoing.
The submission states that the tribunal awarded Tata Motors the right to recoup Rs. 765.78 crore, plus interest at the rate of eleven percent annually, starting on September 1, 2016, and continuing until the money is actually recovered from WBIDC. It was unclear from the filing whether compound or simple interest is used to determine the amount.
Tata Motors announced that it has been granted permission to recoup Rs 1 crore for legal expenses.
“The Arbitral proceedings have come to an end with the making of the final arbitral award as mentioned above,” Tata Motors stated.
Tata Motors was given permission to erect a manufacturing factory on roughly 1,000 acres of farmland by the West Bengal government. However, the corporation chose to abandon its plans in response to strong opposition from local farmers and political figures. The carmaker had already made investments at the location by that point, though. Later on, it moved the manufacturing facility to Gujarat’s Sanand.
