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

Updated: October 13, 2025 21:07

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Tata Steel faces legal challenges over alleged mineral dispatch shortfalls from its Sukinda Chromite Block, with demands exceeding ₹1,900 crore for the fourth year and ₹2,410 crore for the fifth. The Orissa High Court has extended interim protection to Tata Steel, deferring the next hearing to November 6, 2025.

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 filed a writ petition with the Orissa High Court in August 2025 seeking to quash the demand letter.
The High Court granted interim protection on August 14, restraining authorities from taking coercive action.
This interim protection was extended on September 2 and remained in effect as of the latest hearing.
On October 9, 2025, the court heard the matter again and scheduled the next hearing for November 6, 2025.
The interim protection continues until the next hearing, providing Tata Steel relief from enforcement measures.
A separate demand covering the fifth operational year (July 23, 2024, to July 22, 2025) for over ₹2,410 crore is also under contestation.

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

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