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Indian court clears Tata Motors "Nano" factory
18 Jan 2008 08:40:59 GMT
 Source: Reuters
KOLKATA, India, Jan 18 (Reuters) - An Indian court threw out on Friday a slew of complaints against a factory to build the world's cheapest car, saying there was no anomaly in the acquisition of land for the project by Tata Motors.

Tata Motors Ltd <TAMO.BO> unveiled the $2,500 Nano last week and said the new four-seater would roll out later in the year from its factory in the eastern state of West Bengal.

But controversy dogged the factory after local farmers complained the state's communist government had forcibly taken their land.

Farmers even clashed with police to stop 1,000 acres of farmland being fenced off, and appealed to the Calcutta High Court.

On Friday, the court took just five minutes to decide on 11 similar petitions challenging the factory.

"There has been no colourable exercise of power by the West Bengal government in acquiring the land," the court said.

The project was billed as key to the rejuvenation of the state of West Bengal, a signal the communist government was truly investor-friendly.

"We welcome the verdict, we are satisfied," said Buddhadeb Bhattacharjee, the state chief minister whose government has been trying to quell protests by farmers against acquisition of farmland for other industrial projects as well. But the farmers said they would take their fight to the Supreme Court. (Reporting by Bappa Majumdar; Editing by Krittivas Mukherjee and Jerry Norton)


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