Tata Steel Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
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Tata Steel has received a favourable judgement from the Hon'ble High Court of Orissa at Cuttack dated April 20, 2026, disposing of two writ petitions challenging demand letters related to the Sukinda Chromite Block. The first demand letter (July 2025) sought ₹190.27 crore for alleged shortfall in mineral dispatch for the 4th year, while the second (October 2025) sought ₹241.09 crore for the 5th year. Both demands were based on Rule 12-A of the Minerals Concession Rules, 2016. The High Court ruled that the penal provisions under sub-rules 1A, 1B, and 1C apply only prospectively from July 1, 2021 and cannot be applied retrospectively. The Court also held that the Mining Plan shall prevail over the MDPA in case of any inconsistency. Consequently, both demand notices stand quashed to the extent they contradict the Court's conclusions.
Positive outcome for Tata Steel as the High Court has quashed demand letters totalling approximately ₹431 crore, ruling that penal mining provisions cannot be applied retrospectively. This eliminates a significant contingent liability and removes regulatory uncertainty around the Sukinda Chromite Block operations.