Hindustan Motors, the erstwhile makers of the Ambassador car, informed the bourses on Monday that its plans to set up an electric vehicles project at Uttarpara are stalled due a notice from the Bengal government.

The Bengal government had issued an order for resumption of HM Uttarpara land after the state decided to take it back due to several years of inactivity. The company had declared suspension of work at Uttarpara on May 24, 2014.

“The company has also signed an MoU (Memorandum of Understanding) and is in an advanced stage of discussion for a joint venture with a company involved in the EV segment. However, the project is stalled due to a notice from WB State Govt. on resumption of H M Uttarpara land,” the company said in its filing.

The company further said that it has “alternative plans” to facilitate and generate additional revenue and realise adequate funds required. But this will only happen once the resumption issue is resolved.

The exchange filing also said that the application filed before the West Bengal Land Reform and Tenancy Tribunal and matter is pending for final hearing under the guideline of Calcutta High Court.

The Telegraph had earlier reported that the state cabinet in 2006 had allowed the company to sell off 307 acres to generate Rs 85 crore as part of a revival bid. But years later, it was found that the plot had been sold to Bengal Shriram for about Rs 300 crore.

Following an audit report in 2014, Bengal had asked the company to deposit with the state treasury the additional amount it had generated by selling the land. However, the company had said it was planning to produce EVs at Uttarpara.