Singur Act: HC quizzes state government on compensation for Tatas

The Calcutta high court, which is hearing Tata Motors' case challenging the Singur Land Rehabilitation and Development Act, on Friday asked the government the amount of compensation it plans to offer to the Tata Motors, and what was the timeframe for paying it.

The land was acquired by the previous Left Front government and sold to the Tatas for their new Nano car plant. However, agitation by local farmers against the acquisition, led by the Mamata Banerjee-led Trinamool Congress, forced Tata Motors to abandon the project and shift it to Gujarat.

Banerjee, after she became chief minister, passed the Singur Act in order to return the land to farmers who had been reluctant to part with it.

Justice I P Mukherjee said the act did not specify the amount to be paid to Tata Motors as compensation for taking away the land, which was given to it for setting up a small-car factory. Advocate-general Anindya Mitra, appearing for the government, said he would apprise the court on this matter on Tuesday.

Mitra said the state government spent Rs137 crore for acquiring the land and another Rs76 crore for construction of roads and a drainage system and other development works. This investment amount should be considered when deciding the compensation for the Tata Motors, Mitra said.

Mitra said that the vendors for the Tata small car project, who paid the premium for land, would get about Rs40 crore. There are 53 such companies which took the land on rent for setting up ancilliary units for the project.