Kolkata, 16 July (H.S.) -

A fresh dispute has erupted between Hindustan Motors and the West Bengal government over the company’s historic Uttarpara facility, once the manufacturing hub for the iconic Ambassador cars. The company has accused the state government of unlawfully seizing the plant despite a related matter being sub judice in the Supreme Court. The state, however, maintains that the land had remained unused for years and was lawfully repossessed under existing rules.

In a statement issued late Tuesday night, Hindustan Motors alleged that on the morning of July 11, officials from the state’s land department, accompanied by police and other personnel, entered the premises and seized documents, machinery, equipment, licensed weapons, and the company’s customs warehouse. Calling the move “unilateral and unjust,” the company claimed the action was taken just days before a scheduled Supreme Court hearing, causing “irreparable loss.”

The company further stated that it had submitted formal protests—both via email and in person—to the special secretary of the Land and Land Reforms Department on July 11 and July 14. According to Hindustan Motors, the state government had earlier agreed that no coercive action would be taken regarding the plant until the matter was heard by the apex court. The company expressed surprise over what it described as the state’s abrupt and aggressive move.

In response, a senior official from the land department said the government had given Hindustan Motors several opportunities to utilize the land, but the company failed to do so. In 2022, the state repossessed 395 acres of land from the company, citing its prolonged non-use.

The Uttarpara facility, once a landmark of India’s automotive industry, was home to the manufacturing of the HM Ambassador — a car synonymous with Kolkata’s iconic yellow taxis. Hindustan Motors officially shut down production at the plant in May 2014. Of the total 720 acres, the company had earlier sold 314 acres in 2009 to the Shriram Group for ₹285 crore for real estate development.

The Supreme Court is scheduled to hear the matter on July 22. In the lead-up, tensions between the company and the state government are expected to intensify, both legally and politically.

Hindusthan Samachar / Satya Prakash Singh