Ruling in favour of Tata Motors, Calcutta High Court on Friday held the Singur Land Act unconstitutional.
West Benagl Chief Minister Mamata Banerjee had enacted the Singur land law within a month of forming the government last year in May, with the objective of returning the land to the farmers.
Tata Motors had moved the division bench of the high court seeking repeal of the act.
Sources in Tata Motors say the company is unlikely to shift factory back to West Bengal
despite the verdict in their favour.
A total of 997 acres of land in Singur in Hooghly district was leased to Tatas
by the Left government for the firm's Nano car project, along with several vendors who were to set up ancillary units at the site.
While 645 acres were allotted to the company, the rest of the land was given to the vendors.
Tata Motors had to shift its Nano small car plant to Gujarat from Singur in 2008, owing to protests by farmers
, led by the Trinamool Congress. The party sought the return of 400 acres taken from farmers, who were reportedly unwilling to part with their land.