Cars News

Maruti Suzuki India unable to pay local farmers for Manesar plant land

Demands for Rs.1,200 crores in addition for land acquisition dues, for the 600 acres of plant land at Manesar have been made to Maruti Suzuki Limited. The company acquired this land in 2002 and needs to pay additional compensation to farmers. However, now Maruti Suzuki India has cited their inability to cough up this amount and have urged the Supreme Court to hear their plea before taking the final decision.

Earlier in 2008, the company had paid Rs.118.90 crores for 602.80 acres of land. Later in February 2011, the Punjab and Haryana High Court ordered the company to pay an additional compensation amount to the extent of Rs.37.40 lakhs per acre up from an earlier amount of Rs.28.15 lakhs per acre.

This entails an additional amount of Rs.1,200 crores which needs to be paid, is causing a strain on Maruti Suzuki India, which recently underwent certain amount of hardships, following unrest and strikes which affected car production to a major extent.

Maruti in their plea to the court, have argued that it is rather unviable for land acquired for the project which was estimated at Rs.100 crores to now go over Rs.1000 crores while 65% was also to be deducted towards development charges  as the land was not developed at all.

Source: ET

About the author

Sagar Patel

Sagar Patel

A first drive in a manual rickety old van was enough to pave the road forward for Editor in Chief, Sagar Patel. When not driving or riding, his dexterity shifts gear to voice passion through words via reviews, and news, all the while, closely monitoring updates from the auto industry.

Email - sagar@rushlane.com

Followon Google+
 
 

Your opinion matters