MSI to pay Rs 137.58 cr more for Manesar land
Car market leader Maruti Suzuki India has said it received an additional demand for Rs 137.58 crore during last quarter as an enhanced amount for the land of the Manesar plant by the Haryana government.india Updated: Jan 27, 2013 13:13 IST
Car market leader Maruti Suzuki India has said it received an additional demand for Rs 137.58 crore during last quarter as an enhanced amount for the land of the Manesar plant by the Haryana government.
The company said it is already fighting a legal battle against Haryana State Industrial & Infrastructure Development Corporation Ltd (HSIIDC) for a demand of Rs 501.24 crore as an additional compensation by landowners at Manesar. The order has been reserved by the Supreme Court.
"The demand of Rs 13,758 lakh for remaining part of land at Manesar was received subsequent to the quarter-end and the company is in the process of evaluating its legal options," Maruti Suzuki India (MSI) said while declaring its results for the third quarter ending December 31, 2012.
The company, however, did not share details such as how much is the additional land area and what is the total amount of compensation to be paid to the landowners.
"The company's application relating to the demand raised for additional compensation by landowners for land acquired from them at Manesar, has been heard and the order has been reserved by the Supreme Court against the demand of Rs 50,124 lakh," MSI said.
Last year, the state government had asked the company to pay Rs 235.40 crore to HSIIDC as enhanced compensation to farmers for land acquisition under a Supreme Court order.
However, as per reports, MSI has been asked to pay an additional amount of up to Rs 1,200 crore to HSIIDC.
HSIIDC had sent multiple notices to the company after it did not pay the amount.
In the first notice issued in March 2012, HSIIDC had asked MSI to deposit a sum of Rs 2,35,40,26,584 (inclusive of interest up to April 30, 2012 subject to mistake and bona fide mistake in calculation) calculated at Rs 1,222 per square metre within a period 30 days. When MSI did not pay the amount after the first notice HSIIDC issued another notice on June 25, which stated that an action would be initiated against the car manufacturing company.
HSIIDC had further warned the company that if it did not deposit the amount within three months, the land allotted for the Manesar plant "shall become liable for resumption and further action would be taken".
It had given MSI the option to make the payment in five half-yearly instalments along with the interest at 11 per cent on unpaid amount.
Maruti Suzuki has a total land area of 600 acres in Manesar where it has two car manufacturing plants with a third one being constructed.