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

*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 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.71% | +0.20% | +14.05% | +15.25% | +41.03% | +163.39% |
















































