Land dispute could delay production of Tata Nano

The $2,500 Tata Nano is supposed to start production later this year, but a land dispute could delay the car's production, a new report finds. India's Supreme Court requested a reply from Tata Motors and the West Bengal government as to why 'fertile multi-crop agricultural land' was being used for the Nano's production plant.

The Calcutta High Court allowed Tata and the West Bengal government to acquire the land, but a new petition has been filed requesting the immediate halt of the project. The petition claims the land use goes against the Land Acquisition Act of 1894, according to the Times of India.

The facility -- which is located in Singur, India -- is slated to begin production of the world's cheapest car in October. However, a hearing has been set for July, meaning the Nano project could be delayed, giving other automakers time to catch up with Tata's microcar.