WBIDC indemnified Tata's Singur project: TML counsel

On the first day of hearing on the writ petition challenging the re-possession of Singur land by West Bengal government, Tata Motors told the Calcutta High Court that the West Bengal Industrial Development Corporation (WBDIC) had agreed to an indemnity clause in case of any loss incurred by the lessee.

Appearing for Tata Motors, Samaraditya Pal submitted before Justice Saumitra Pal that lessor WBDIC had agreed to indemnify the company in case it suffered losses of any kind.

The indemnification amount would be equivalent to the actual expenditure incurred by the company on the project, he said.

The indemnification clause was a part of the leased agreement signed between Tata Motors and WBIDC on behalf of West Bengal government, he said.

He said the factual background was required to be placed before the court and 997.11 acre was acquired comprising five mouzas under the Singur police station for public purpose and at public expense.

He submitted West Bengal government was of the view that since the state had lagged behind in terms of industrialisation and unemployment was rampant, the project would have a demonstrative effect and also generate employment to 2,000 directly and 10,000 indirectly, which was a public purpose.