High court orders to stop construction of Hero MotoCorp’s Andhra Pradesh facility

This comes as a major blow to Hero MotoCorp. A high court in Hyderabad has ordered Hero MotoCorp to stop the construction of its new factory in Andhra Pradesh.

This order was passed after a petition that was filed by Tamil Nadu based company called Ishwariya Orchards. This company has claimed ownership and possession of the land that was allotted to Hero MotoCorp by the Andhra Pradesh government. This comes a major embarrassment to the government who had tried very hard to get the world’s largest two-wheeler manufacturer to its state, after it showed interest to set up a new factory in South India.

Ishwariya Orchards claims that it learnt through newspapers that the Andhra Pradesh government has entered into an agreement with Hero MotoCorp on September 16 last year to allot the lands in dispute for setting up its manufacturing unit. Soon after this development was announced, Ishwariya Orchards moved to High Court to bring a stay order.

Along with this facility, Hero MotoCorp is expanding its facility in Neemrana in Rajasthan and constructing a new one in Halol in Gujarat. The Gurgaon-based manufacturer intends to take its overall production facility to 12 million units with its new factories.