NewsStocksTata Steel: High Court Continues Interim Protection For Tax Demand Notices Until January 8Tata Steel: High Court Continues Interim Protection For Tax Demand Notices Until January 8
Tata Steel has secured extended court protection until January 8, 2026, in two separate legal challenges against mining authority demands worth ₹4,313.62 crores. The demands relate to alleged shortfall in chromite dispatch from Sukinda Chromite Block operations, with the Orissa High Court providing interim relief preventing coercive action while proceedings continue.
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Tata Steel has received extended interim protection from the Orissa High Court at Cuttack until January 8, 2026, in two material litigation cases involving substantial financial demands from mining authorities. The company disclosed this development through a regulatory filing dated December 23, 2025, following the court's order dated December 19, 2025.
Dual Legal Challenges Over Mining Compliance
The steel major is contesting two separate demand letters from the Office of Deputy Director of Mines, Jajpur, related to its Sukinda Chromite Block operations. These demands stem from alleged violations of Rule 12-A of the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016 (MCR 2016).
| Case Details: | Writ Petition 1 | Writ Petition 2 |
|---|---|---|
| Petition Number: | Civil No. 22431 of 2025 | Civil No. 31035 of 2025 |
| Demand Amount: | ₹1,902.73 crores | ₹2,410.90 crores |
| Assessment Period: | 4th year (July 23, 2023 - July 22, 2024) | 5th year (July 23, 2024 - July 22, 2025) |
| Demand Letter Date: | July 3, 2025 | October 3, 2025 |
| Petition Filed: | August 8, 2025 | October 29, 2025 |
Court Proceedings and Interim Relief
Both writ petitions seek quashing of the respective demand letters issued by mining authorities. The Orissa High Court tagged both petitions with similar cases and granted interim protection restraining authorities from taking coercive action against the company. For the first petition, the court initially granted interim protection on August 14, 2025, which was subsequently extended through multiple hearings until December 19, 2025. The second petition received similar protection starting November 21, 2025, also extended until the same date.
Financial Implications and Regulatory Context
The combined demand of ₹4,313.62 crores represents significant financial exposure for Tata Steel. The mining authorities' demands are connected to revised assessment of shortfall in mineral dispatch from Sukinda Chromite Block and alleged violations under Mine Development and Production Agreement terms, leading to consequent appropriation of performance security.
| Financial Impact: | Details |
|---|---|
| Total Demand: | ₹4,313.62 crores |
| First Demand: | ₹1,902.73 crores |
| Second Demand: | ₹2,410.90 crores |
| Nature: | Alleged shortfall in chromite dispatch |
Current Status and Regulatory Compliance
Following the December 19, 2025 hearing, the Orissa High Court has extended interim protection for both matters until January 8, 2026. This protection prevents mining authorities from taking any coercive measures against Tata Steel while the legal proceedings continue. The company has made this disclosure in compliance with Regulations 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency regarding material litigation that could impact its operations and financial position.
Historical Stock Returns for Tata Steel
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.50% | +0.17% | +8.81% | +13.05% | +39.42% | +169.51% |
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