Kolkata, Aug. 5 -- In a bid to explore an out-of-court settlement over financial compensation related to the Tata Group's exit from the Nano project in Singur, a delegation from the state Industry Department held discussions and arbitration-related meetings with Tata Group representatives in Mumbai.
According to Nabanna sources, discussions in Mumbai focused on compensation and arbitration outcomes after Tata Motors left the car project in Singur. The state government has requested the Tata Group for waiver of the penalty that the arbitral tribunal had directed the West Bengal Industrial Development Corporation (WBIDC) to pay. The interest has been charged at an annual rate of 11 per cent, calculated from September 1, 2011, along with an additional Rs 1 crore towards legal costs.
The Calcutta High Court in May this year had issued a stay order on the directive to pay Rs 765.78 crore compensation to the Tata Group for failure to establish a factory
in Singur in Hooghly district.
Notably, in October 2023, an arbitral tribunal comprising three former judges directed that Tata Motors be paid
Rs 765.78 crore as compensation for inability to set up a factory in Singur. In addition to the principal amount, the tribunal directed the WBIDC to pay interest at an annual rate of 11 per cent, calculated from September 1, 2011, along with an additional Rs 1 crore towards legal costs.
The Trinamool government subsequently challenged this verdict in the High Court.
Published by HT Digital Content Services with permission from Millennium Post.