SC upholds West Bengal's resumption of Hindustan Motors' factory land

The Supreme Court on Wednesday dismissed a special leave petition (SLP) filed by Hindustan Motors, affirming the validity of West Bengal government’s resumption of 395 acres of land allotted to the company in Uttarpara, Hooghly.

 

Debanjan Mandal, managing partner, Fox & Mandal, said this marks the culmination of a prolonged legal battle, during which the state successfully demonstrated that the land had remained unutilised for several decades. And also, that its resumption was in public interest and in accordance with the law.

 

Fox & Mandal appeared on behalf of the state government.

 

When contacted, Uttam Bose, director of Hindustan Motors, said, “no comments” in a text response. 

Hindustan Motors was represented by Shyam Diwan Sr Adv and Khaitan & Co. Divyanshu Kumar Srivastava acted as the Advocate on Record.  The Hindustan Motors’ Uttarpara plant, which used to roll out the iconic Ambassador car, had declared “suspension of work” in 2014, which continued.

 

 

The legal wrangle between the state and the company goes back to 2022. On July 6, 2022, the West Bengal government had expressed its intention to resume (claim) the 395 acres of land.

 

By an order dated November 9, 2022, the state resumed 395 acres, which was challenged by the company and set off legal proceedings.

 

Earlier, the Land Tribunal had upheld the state’s decision to resume the land under the West Bengal Estates Acquisition Act, 1953.

 

This was challenged by Hindustan Motors before the Calcutta High Court, which, by its judgment dated May 22, 2025, rejected the appeal and confirmed the state’s right to resume the unused land.

 

Earlier in the week, the West Bengal Cabinet approved the transfer of a 40-acre land to Titagarh Rail Systems (TRSL). This was part of Hindustan Motors’ Uttarpara land and prompted a sharp reaction from the company.