In 2006, the then Left Front government acquired farmland in Singur to provide land to the Tata Group for setting up its “one-lakh car” manufacturing plant. The acquisition process, however, drew strong objections from the then opposition party, Trinamool Congress, which launched a large-scale protest involving many farmers and social activists. The movement eventually became one of the key catalysts for the political change in West Bengal in 2011. After coming to power, the Trinamool Congress government, following a Supreme Court order, returned the land to the farmers.

While the farmers regained their land, Tata Group lost the opportunity to set up the factory, suffering significant financial losses. Seeking compensation, the company moved the matter to court, which was referred to an arbitration tribunal. The tribunal ruled in favour of Tata Motors, directing the state to pay compensation.

On Friday, a Supreme Court bench comprising Justice P. Narasimha and Justice Atul S. Chandurkar upheld the tribunal’s decision, ordering the state government to pay Tata Motors ₹766 crore. During the hearing, the state’s counsel, Kapil Sibal, questioned the impartiality of one tribunal member, but the bench dismissed the concern and warned that if the allegation proved unfounded, the state could face a hefty penalty.

The verdict has sparked political reactions across the state. Opposition parties have criticised the government, claiming that “politics over protests” has cost the state heavily, both in reputation and financially. The ruling party has yet to issue an official response.