Controversy had dogged the project as local farmers protested and clashed with police, alleging that the Left government in West Bengal had forcibly taken 997.11 acres of their land in Singur, some 40 km from here.

The main petition was filed on February 9 last year by one Joydeep Mukherjee, and 10 other petitioners joined him, alleging that provisions of the Land Acquisition Act, 1894 and the Land Acquisition (Companies) Rules, 1963, had not been followed.

A bench of Chief Justice S S Nijjar and Justice P C Ghosh decided that the government had gone by the rulebook and the actions of the Hooghly collector in charge of acquisitions were completely legal. The operative part of the verdict was read out today; the final 217-page copy will be delivered tomorrow.

Protests had begun in Singur right after the project was announced, but gained momentum after the Trinamool Congress, led by Mamata Banerjee, formed the Save Farmland Committee.

Today’s court decision is a major relief to the state government, which has been wooing investment for bringing industrialisation to the state.

West Bengal’s Commerce & Industry Minister Nirupam Sen said: “We are very happy with the verdict. It is a positive step towards improving the investment environment in the state. It is an important decision for the industrialisation process in the state. I request those who have not claimed compensation till now to please do so and cooperate with the government for rehabilitating them.”

Chief Minister Buddhadeb Bhattacharjee said that alternative livelihood for those whose land has been acquired would be explored.

“This court order is in the greater interest of the people of West Bengal and will help strengthen the drive for industrialisation,” said Bhattacharjee.

Both main petitioner Mukherjee and Trinamool Congress chief Mamata Banerjee said they would appeal the order in Supreme Court.