In a win for the Mamata Banerjee government, and a setback for Tata Motors, the Supreme Court on Wednesday set aside the Singur land acquisition made in 2006. The acquisition had been made to facilitate Tata Motors to set up its Nano plant in the state. The Supreme Court on Wednesday quashed the allotment of 1,000 acres by the former CPI(M)-led government in West Bengal to Tata Motors in 2006 for the company's aborted project to start a Nano car plant in Singur, declaring that the “entire acquisition process was illegal”. "The land acquisition process adopted by the then CPM government, which was opposed by the TMC (Trinamool Congress Party), was wrong on many counts," theSupreme Court said in its judgment about the land acquired by the Buddhadeb Bhattacharya government.

The court held that the acquisition could not be said to be for a “public purpose” and hence the land should be remitted back to farmers within 12 weeks. Farmers who got compensation from the govt will not return it because they were deprived of their livelihood for the last ten years, the court said. Upon hearing the verdict, farmers and locals erupted in joy and celebrated by throwing gulal on each other. They also raised slogans in praise of chief minister Mamata Banerjee, who first came to power riding on the wave of protests against the acquisition of land in Singur. Tata Motors moved the Calcutta High Court challenging the law. The acquisition of the land was upheld by a trial court and the law passed by the Trinamool Congress-led state government was declared unconstitutional on appeal.