The West Bengal government had initiated the legal process of reclaiming the 395 acres of land from Hindustan Motors in Uttarpara around three years ago.
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SUSHANTA PATRONOBISH

The Supreme Court on Wednesday upheld the West Bengal government’s decision of reclaiming around 395 acres of Hindustan Motors factory land as the apex court dismissed a special leave petition filed by the C.K. Birla Group company.

A bench of Justices BV Nagarathna and KV Viswanathan dismissed the plea filed by Hindustan Motors. The erstwhile manufacturer of the iconic Ambassador car challenged a May 2025 Calcutta High Court judgment which had affirmed the State’s right to reclaim the unused land.

Earlier, a land tribunal had upheld the State’s decision to reclaim the land under the West Bengal Estates Acquisition Act, 1953. This decision was challenged by Hindustan Motors before the Calcutta High Court, which rejected the appeal and confirmed the State’s right to resume the unused land.

The Supreme Court found no reason to interfere with the findings of the High Court.

The West Bengal government had initiated the legal process of reclaiming the 395 acres of land from Hindustan Motors in Uttarpara around three years ago.

Decks cleared

Significantly, the State Cabinet on Monday cleared decks for the transfer of around 40 acres out of the total of 395 acres to Titagarh Rail Systems.

Titagarh Rail Systems is planning to use the land to expand production and commission metro and Vande Bharat train coaches, with a state-of-the-art testing facility and dedicated test track.

“The company is pleased to inform that it has entered into a 99-year lease agreement dated July 12, 2025 with the Governor of West Bengal for approximately 40.009 acres of contiguous land at Mouza Kotrung and Mouza Bhadrakali, Uttarpara, West Bengal, at an aggregate consideration of ₹126.63 crore,” Titagarh Rail said in a stock exchange filing.

Earlier, Hindustan Motors, India’s first ever car maker, said that it was planning to utilise its land at Uttarpara for a project to make electric vehicles. However, the proposed project for making EVs was stalled due to a notice from the West Bengal government over the resumption of its land at Uttarpara.

The crisis-ridden automaker had stopped producing the iconic Ambassador cars in 2014 as sales had dwindled. The management had declared “Suspension of work” at its Uttarpara plant with effect from May 24, 2014. The brand was eventually sold to French automaker Peugeot.

Published on July 16, 2025