On the first day of hearing on the writ petition challenging the West Bengal government's re-possession of Singur land, Tata Motors (TML) told the Calcutta High Court that WBDIC had agreed to an indemnity clause in case of any loss incurred by the lessee.
Samaraditya Pal, appearing for Tata Motors, submitted before justice Saumitra Pal that lessor West Bengal Industrial Development Corporation had agreed for indemnification of the company against any kind of losses it might suffer.
The amount of indemnification would be equivalent to the actual expenditure the company incurred on the project.
He said the indemnification clause formed part of the leased agreement signed between Tata Motors and WBIDC on behalf of West Bengal government.
According to him the factual background was required to be placed before the court and 997.11 acre comprising five mouzas, under the Singur police station was acquired for public purpose and at public expense.
He submitted West Bengal government had taken the view that since the state had lagged behind on the industrial front and with rampant unemployment, the project would produce a demonstrative effect and also generate employment to 2,000 directly and 10,000 indirectly, which and serve a public purpose.