Tata Steel Secures Interim Relief Extension in ₹4,313 Crore Demand Matters

2 min read     Updated on 12 Jan 2026, 10:07 PM
scanx
Reviewed by
Suketu GScanX News Team
Overview

Tata Steel has obtained extended interim relief from the Orissa High Court until January 19, 2026, in two writ petitions challenging demand notices totaling ₹4,313.61 crore related to its Sukinda chromite block. The demands of ₹1,902.72 crore and ₹2,410.89 crore concern alleged shortfalls in mineral and chrome ore dispatch during the fourth and fifth years of the Mine Development and Production Agreement respectively.

29781479

*this image is generated using AI for illustrative purposes only.

Tata Steel has secured a crucial extension of interim relief from the Orissa High Court in two major litigation matters involving demand notices worth a combined ₹4,313.61 crore related to its Sukinda chromite block operations. The court has extended interim protection until January 19, 2026, providing the steel major continued respite from potential coercive action by mining authorities.

First Demand Notice: ₹1,902.72 Crore

The initial legal challenge stems from a demand letter received on July 3, 2025, from the Deputy Director of Mines, Jajpur. The key details of this case include:

Parameter: Details
Demand Amount: ₹1,902.72 crore
Assessment Period: July 23, 2023 to July 22, 2024
Allegation: Shortfall in mineral dispatch (4th year of agreement)
Rule Violation: Rule 12-A of Minerals Concession Rules, 2016
Writ Petition Filed: August 8, 2025
Initial Relief Granted: August 14, 2025

The company successfully obtained interim protection on August 14, 2025, which has been extended multiple times, with the latest extension running until January 8, 2026, before the current extension to January 19, 2026.

Second Demand Notice: ₹2,410.89 Crore

A separate and larger demand emerged later in 2025, creating additional legal complexity for the steel manufacturer:

Parameter: Details
Demand Amount: ₹2,410.89 crore
Assessment Period: July 23, 2024 to July 22, 2025
Allegation: Chrome ore dispatch shortfall (5th year of agreement)
Demand Letter Date: October 3, 2025
Writ Petition Filed: October 29, 2025
Initial Relief Granted: November 21, 2025

This second matter follows a similar pattern, with the High Court granting interim protection on November 21, 2025, subsequently extended until January 8, 2026, and now further extended to January 19, 2026.

Legal Timeline and Current Status

Both cases represent significant financial exposure for Tata Steel, with the combined demand notices totaling ₹4,313.61 crore. The interim protection prevents mining authorities from taking any coercive measures while the legal proceedings continue. The company's proactive approach in challenging these demands through writ petitions has successfully secured court protection across both matters.

The next hearing date of January 19, 2026, will be crucial for determining the future course of these proceedings. The steel major's legal strategy appears focused on challenging the validity of the demand notices and the underlying assessments of alleged shortfalls in mineral and chrome ore dispatch.

Market Response

Despite the significant legal challenges, Tata Steel shares demonstrated resilience, closing at ₹183.30 on the BSE, registering a gain of ₹4.90 or 2.75% on the trading session when this development was announced.

Historical Stock Returns for Tata Steel

1 Day5 Days1 Month6 Months1 Year5 Years
+2.71%+0.20%+14.05%+15.25%+41.03%+163.39%
Tata Steel
View in Depthredirect
like16
dislike

Tata Steel Secures Extended Court Protection in ₹4,313 Crore Mining Dispute

2 min read     Updated on 12 Jan 2026, 09:40 PM
scanx
Reviewed by
Riya DScanX News Team
Overview

Tata Steel Limited has secured extended interim protection from the Orissa High Court until January 19, 2026, in two writ petitions challenging mining authority demands totaling ₹4,313.62 crores. The disputes involve alleged shortfalls in mineral dispatch from the Sukinda Chromite Block for two consecutive assessment periods under the Mine Development and Production Agreement. The court's protection prevents authorities from taking coercive action while legal proceedings continue.

29779823

*this image is generated using AI for illustrative purposes only.

Tata Steel Limited has received extended interim protection from the Orissa High Court until January 19, 2026, in two critical writ petitions challenging mining authority demands totaling ₹4,313.62 crores related to its Sukinda Chromite Block operations.

Court Proceedings and Timeline

The company disclosed on January 12, 2026, that the Orissa High Court at Cuttack has further extended interim protection in both litigation matters, restraining opposite parties and authorities from taking coercive action until the next hearing date.

First Writ Petition Details

The first dispute centers on a demand letter received on July 3, 2025, from the Office of Deputy Director of Mines, Jajpur. The following table outlines the key parameters of this case:

Parameter: Details
Demand Amount: ₹1,902.73 crores
Assessment Period: July 23, 2023 to July 22, 2024 (4th year)
Writ Petition Number: 22431 of 2025
Filing Date: August 8, 2025
Initial Protection Date: August 14, 2025

The demand relates to revised assessment of shortfall in mineral dispatch from the Sukinda Chromite Block, allegedly violating Rule 12-A of the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016, and consequent appropriation of performance security.

Second Writ Petition Overview

A second demand letter was issued on October 3, 2025, leading to another legal challenge. The case details are as follows:

Parameter: Details
Demand Amount: ₹2,410.90 crores
Assessment Period: July 23, 2024 to July 22, 2025 (5th year)
Writ Petition Number: 31035 of 2025
Filing Date: October 29, 2025
Initial Protection Date: November 21, 2025

This demand concerns assessment of shortfall in Chrome Ore dispatch from the same mining block, also citing alleged violation of Rule 12A of the MCR 2016 and consequent appropriation of performance security.

Legal Strategy and Court Response

Both writ petitions have been tagged with similar cases by the Orissa High Court, indicating a pattern of such disputes in the mining sector. The court has consistently granted interim protection since the initial hearings, preventing authorities from taking immediate coercive measures against the company.

The legal proceedings demonstrate Tata Steel's systematic approach to challenging what it considers improper demands by mining authorities. The company seeks quashing of both demand letters through the judicial process.

Regulatory Compliance

Tata Steel has made this disclosure in compliance with Regulations 30 and 51 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure follows the company's previous communication dated December 23, 2025, regarding material litigations relating to the Sukinda Chromite Block.

The next hearing is scheduled for January 19, 2026, when the court will review the cases and determine the future course of these significant mining disputes affecting the steel manufacturer's operations.

Historical Stock Returns for Tata Steel

1 Day5 Days1 Month6 Months1 Year5 Years
+2.71%+0.20%+14.05%+15.25%+41.03%+163.39%
Tata Steel
View in Depthredirect
like19
dislike
More News on Tata Steel
Explore Other Articles
183.24
+4.84
(+2.71%)