Government of West Bengal alleged to have illegally seized Hindustan Motors' closed factory; officials claim recouped unutilized land
The ongoing legal battle between Hindustan Motors and the West Bengal government revolves around the alleged unlawful seizure of Hindustan Motors’ Uttarpara plant by the state government in July 2025.
Hindustan Motors claims that on July 11, government officials, accompanied by land department authorities and police, entered their premises without authorization and took possession of property including documents, machinery, equipment, licensed weapons, and even a customs warehouse. The company calls this action unauthorized and prejudicial, especially since a Special Leave Petition (SLP) on the matter is still pending before the Supreme Court, with a scheduled hearing on July 22, 2025.
The West Bengal government, however, justifies the seizure by citing that 395 acres of land had been taken back in 2022 due to non-utilization by Hindustan Motors, which has been declared financially sick. Despite multiple opportunities given to the company to prove productive use of the land, it failed to do so, leading to the state reclaiming it as per due process. The government asserts the land was unutilized and that the action complies with relevant procedures to reallocate industrial land for new investments.
The Uttarpara plant, once the manufacturing site of the iconic Ambassador car, has been non-functional since the cessation of Ambassador production in 2014. Hindustan Motors had sold a portion of its original 720-acre holding to a third party in 2009, while 395 acres were seized by the state in 2022. The Sriram group purchased the 314-acre land parcel from Hindustan Motors in 2009 for real estate development.
Hindustan Motors has expressed surprise over the state government’s sudden move, stating that earlier discussions had led them to believe that no coercive action would be taken until the Supreme Court heard the matter, which is listed for July 22. The company's complaint states that the action taken by the West Bengal government has caused considerable prejudice to its challenge, as a Special Leave Petition is pending before the Hon'ble Supreme Court of India.
The current status of the legal tussle remains unresolved, with both sides maintaining strongly opposed positions: the company alleges unlawful seizure, while the state cites land non-utilization and rightful repossession. The next significant legal development is expected during the Supreme Court hearing scheduled for July 22, 2025.
Hindustan Motors believes that the seizure of their Uttarpara plant property by the West Bengal government, which includes financial documents and machinery, might affect their business operations due to the ongoing legal dispute. The government argues that the seized land, which was previously non-utilized by Hindustan Motors, can be reallocated for new investments in accordance with appropriate procedures in the business sector.
