In a judgement given recently, the Gujarat High Court rejected a public interest litigation (PIL) filed by some Ahmedabad resident, Himanshu Patel, challenging the state government’s decision to give a loan to the Tatas of Rs. 9600 crore at a 0.01 per cent interest rate. Gujarat’s counsel Prakash Jani stated that other states like Orissa, Bihar, Tamil Nadu, Haryana and Maharashtra have amended their policies for industrial development... Gujarat government has not given any special benefits to Tatas." The PIL had also questioned land allocation for the Nano plant.
"State's industrial policy has not been found inappropriate in connection with the land allocation for the establishment of Tata's Nano car plant, in which this court shall not intervene," the division bench of Chief Justice Bhaskar Bhattacharya and Justice J B Pardiwala said. The tax-benefits given to the plant were not illegal, the Gujarat High Court held. The Nano plant was set up on 725 acres of land in Sanand in 2008 after the Tatas pulled out of Singur in West Bengal.