Tata Steel’s Legal Tug-of-War: Odisha Court Extends Stay Amid Multi-Crore Chromite Block Demand

Tata Steel Limited continues to grapple with a significant legal dispute over alleged shortfalls in mineral dispatch from its Sukinda Chromite Block in Odisha. The issue stems from a demand letter received on July 3, 2025, from the Office of Deputy Director of Mines, Jajpur, which raised a substantial claim of ₹1,902.72 crore. This demand followed an assessment of the company's alleged shortfall in mineral dispatch in the fourth operational year (July 23, 2023, to July 22, 2024), with the authorities citing violation of Rule 12-A of the Minerals Concession Rules, 2016.

 

Key highlights of the case include:

Tata Steel, while acknowledging the demands, asserts that the claims lack substantive legal merit and has chosen to rigorously defend its position through judicial recourse. The ongoing litigation highlights challenges facing mining operations in compliance with regulatory dispatch norms under the Minerals Concession Rules.

 

Investors and stakeholders are closely monitoring the developments given the financial magnitude and regulatory implications of the dispute. The company's strategy to seek legal remedies underscores its commitment to protecting shareholder value amid regulatory uncertainties. The next court hearing in November will be pivotal in determining the course of this high-stakes dispute.

 

Source: Tata Steel Limited exchange disclosures, Reuters, Investing.com, Economic Times