The Orissa High Court has extended interim protection for Tata Steel until December 19 in two separate writ petitions challenging penalty demands totaling ₹4,313.39 crores related to alleged shortfall in mineral dispatch from the company's Sukinda Chromite Block operations.

Legal Proceedings and Timeline

The legal dispute involves two separate demand letters issued by the Deputy Director of Mines, Jajpur, for alleged violations of Rule 12-A of the Minerals Concession Rules, 2016. The first demand letter dated July 3 raised a penalty of ₹1,902.73 crores for the fourth year of operations, while the second demand letter dated October 3 sought ₹2,410.90 crores for the fifth year.

Penalty Assessment Breakdown

The mining authorities have raised separate assessments for consecutive operational years under the Mine Development and Production Agreement, citing shortfall in chrome ore dispatch from the Sukinda Chromite Block.

Court Proceedings and Interim Relief

Tata Steel filed the first writ petition on August 8, seeking to quash the initial demand letter. The High Court granted interim protection on August 14, restraining authorities from taking coercive action. The second writ petition was filed on October 29, with similar interim protection granted on November 21.

Both petitions have been tagged with similar cases, and the court has consistently extended interim protection through multiple hearings. The latest extension came during the December 12 hearing, providing relief until the next scheduled hearing on December 19.

Regulatory Compliance and Disclosure

The company has made this disclosure in compliance with Regulations 30 and 51 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. This follows the company's earlier disclosure dated December 4 regarding material litigations relating to the Sukinda Chromite Block.

The interim protection prevents mining authorities from appropriating performance security or taking other coercive measures while the legal challenge remains pending before the High Court.

Global brokerage firm Jefferies has issued a Buy recommendation for Tata Steel , setting a target price of ₹200.00 per share. This positive rating from the international investment firm indicates confidence in the steel major's business outlook and growth potential.

Brokerage Recommendation Details

The recommendation from Jefferies represents a bullish stance on Tata Steel's stock performance. Investment firms typically issue Buy ratings when they believe a stock is undervalued at current market prices and expect it to deliver positive returns for investors.

Market Implications

Brokerage recommendations from established firms like Jefferies often influence investor sentiment and trading activity. The target price of ₹200.00 suggests the firm's analysts expect the stock to reach this level based on their valuation models and assessment of the company's fundamentals.

Such recommendations are typically based on comprehensive analysis of various factors including the company's financial performance, industry outlook, competitive positioning, and broader market conditions. Investors often consider these professional assessments as part of their investment decision-making process.