© Reuters.
In a significant ruling on Monday, the Supreme Court and an arbitral tribunal both favored Tata Motors (NYSE:) in a longstanding land acquisition dispute against the West Bengal government. The dispute originated from Tata Motors’ decision to abandon its plans to construct a manufacturing plant in Singur, despite having invested over Rs 1,000 crore. The company was forced to move its Nano car manufacturing operations to Sanand, Gujarat due to substantial local farmer and political protests.
The three-member Arbitral Tribunal unanimously decided that the West Bengal Industrial Development Corporation Ltd (WBIDC) must compensate Tata Motors with Rs 766 crore. This sum includes Rs 765.78 crores plus an annual interest of 11% from September 1, 2016, until recovery. The automaker is also entitled to an additional Rs 1 crore to cover litigation expenses.
The compensation covers multiple heads, including loss of capital investments incurred due to the forced shift of operations. The legal proceedings concluded on Monday with a unanimous award favoring Tata Motors.
InvestingPro Insights
Tata Motors (TAMO), the prominent player in the automobile industry, has been experiencing accelerating revenue growth, as indicated by InvestingPro’s real-time data. The company’s net income is also expected to grow this year, a positive sign for investors considering the recent legal victory.
InvestingPro Tips suggests that the stock generally trades with low price volatility, however, recent stock price movements have been quite volatile, possibly due to the resolution of the land acquisition dispute. Despite this, the stock has seen a high return over the last year and is trading near its 52-week high.
For more insights and tips, consider subscribing to InvestingPro. The platform offers an additional 7 tips for Tata Motors alone, providing a comprehensive view of the company’s financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Read the full article here