Hindustan Motors accuses Bengal govt of illegal property seizure, SC to hear case on July 22

The historic "Hindustan Motors" plant in Uttarpara, West Bengal, has once again become the focal point of a deepening dispute, as the company accuses the state government of illegally occupying its premises despite a pending case in the Supreme Court. The state government, however, maintains that the land had remained unused for an extended period and was repossessed in accordance with legal regulations. This escalating conflict intertwines legal claims, corporate assets, and state policies concerning unused industrial land.

In a statement released on Tuesday night, Hindustan Motors detailed that on the morning of July 11, at approximately 11 AM, representatives of the state government, accompanied by land department officials, police forces, and other personnel, entered the premises. The company alleges that during this entry, various assets, including documents, machinery, equipment, licensed weapons, and customs warehouses, were seized. Hindustan Motors has vehemently labeled this action as "unilateral and wrongful," expressing shock that such a step was taken just before its petition was scheduled for a hearing in the Supreme Court, causing it severe damage.

The company further asserted that it had submitted formal complaint letters and protest letters via email and physically to the Special Secretary of the Land and Land Reforms Department on July 11 and July 14. These actions underscore the company's immediate and strong objection to the government's perceived coercive takeover of the property.

According to Hindustan Motors, there was a prior agreement with the state government that no coercive action would be taken regarding the Uttarpara plant until the Supreme Court hearing took place. The company expressed its profound surprise and dismay at the government's sudden and unexpected move, which it views as a breach of understanding and a disregard for ongoing legal processes.

Responding to the allegations, an official from the state government's land department stated that Hindustan Motors had been given multiple opportunities to utilize the land, but the company failed to do so. The official clarified that in 2022, the government had reclaimed 395 acres of land from the company precisely because it had been lying vacant and unused for a considerable period, justifying the action as lawful and necessary.

It is noteworthy that the Uttarpara plant is the historical site where the iconic HM Ambassador cars were once manufactured. These cars still hold a significant identity on the streets of Kolkata as the famous 'yellow taxis,' making the plant a symbol of automotive heritage. Hindustan Motors ceased production at this facility in May 2014. The total land area of the plant is 720 acres, out of which 314 acres were sold to the Shriram Group for real estate development in 2009 for Rs 285 crore.

The case is now listed for hearing in the Supreme Court on July 22. In light of the state government's recent actions and the company's strong opposition, there is an increased apprehension that the legal and political confrontation over the Hindustan Motors plant is likely to intensify in the coming days, drawing significant public and industrial attention.