The erstwhile state government of West Bengal created the controversy by citing the 1894 land acquisition act rule to conduct an eminent domain takeover of 997 acres (4.03 km2) of farmland on which Tata Motors was supposed to build its factory.
Banerjee's "Save Farmland" movement was supported by environmental activists like Medha Patkar, Anuradha Talwar and Arundhati Roy.
Local politicians gained power by promising agricultural land to landless farmers, but given West Bengal's population density, the land-holdings are small and the yields are insufficient to sustain poor families.
While the shift from agriculture to industrial jobs requires re-training, given India's economic growth, it provides an opportunity for earning higher income.
Chief protesters include the opposition parties spearheaded by the Trinamool Congress under Mamata Banerjee and Socialist Unity Centre of India.
[8] Other intellectuals, writers like the poet Ruchit Shah, artists like Subhaprasanna, theatre and film personalities like Shaoli Mitra, Aparna Sen etc.
[10] Preliminary surveys by officials of the state and Tata Motors faced protests, and manhandling on one occasion, from the villagers organized under the Save Singur Farmland Committee with Trinamool Congress forming its chief component.
The imposition has been declared illegal by the Kolkata High Court[13] While landless peasants and sharecroppers fear losing out entirely, sections of the locals, particularly those owing allegiance to the CPI(M) have welcomed the factory.
[27] On the other hand, the pro-factory villagers siding with the CPI(M) have made accusations against the Naxalite faction of the 'Save Singur Farmland Committee' of threats and violence against them.
Other aspects of the process of setting up the factory that had come under severe criticism are the government's secrecy on the details of the deal and the chief minister's furnishing of false information, including in the legislative assembly Vidhan Sabha.
The falsehoods of the chief minister chiefly pertain to claims made by him of having acquired 912 acres (3.69 km2) [30] through voluntary consent of the owners without the use of force.
[31] The air seemed to have cleared somewhat when the High Court ordered the state government to submit correct figures following which an affidavit but was not satisfied with the result.
Tata mentioned his frustration with the opposition movement at Singur project led by Trinamool Congress chief Ms. Mamata Banerjee.
[37] In 2016, the Supreme Court quashed the West Bengal government's acquisition of 997 acres of agricultural land for Tata Motors and ordered its return to 9,117 landowners.
[38][39] On 30 October 2023, Tata Motors secured an arbitral award of Rs 766 crore (approximately $103 million) plus 11% interest in the Singur plant case.
The three-member Arbitral Tribunal unanimously ruled in favor of Tata Motors, compensating them for losses related to the abandoned Nano car manufacturing facility in Singur.