Tata Motors has suffered a legal setback in Bengal. On Wednesday the Calcutta high court upheld a state government law that was being used to return land acquired for Tata Motors back to farmers. The land in question had been acquired for a proposed factory in Singur that would make Nano cars. In its judgment, the high court said the Singur Land Development and Rehabilitation Act was legally valid. But it added that the law didn’t set out the basis for compensating Tata Motors. The court has given the company two months to vacate the land. The West Bengal government will have to compensate Tata Motors in six months. Wednesday’s court decision is a victory for chief minister Mamata Banerjee. One of her campaign promises was to return the acquired land to the original owners.
Vijay Mallya’s struggling airline Kingfisher wants to chart a new course out of its troubles, and it involves grounding the no-frills service, Kingfisher Red. Speaking on Wednesday, Mallya said margins were much better in the full service sector and that there was enough business to support it. Kingfisher hasn’t made a profit since it launched in 2005.
Here’s a look at how Indian markets fared on Wednesday. Equities in the country retreated during the day’s trade after the previous surging in the previous session. The Sensex dipped 78 points to 16,446. And the Nifty fell 25 to 4,946.