MUMBAI:Tata Steel Limited has secured a continuation of legal protection in two high-value disputes with the mines department over its Sukinda Chromite operations in Odisha.
In a regulatory filing to the stock exchanges today, the steel major disclosed that the Hon'ble High Court of Orissa at Cuttack has extended the interim stay on coercive action by authorities in both cases until the next hearing, scheduled for February 2, 2026.
Background of the Disputes
The legal challenges stem from two separate demand letters issued by the Office of the Deputy Director of Mines, Jajpur.
The first demand, of approximately ₹1,902.73 crore, relates to the alleged shortfall in mineral dispatch for the 4th year (July 2023-July 2024) of the Mine Development and Production Agreement (MDPA). Tata Steel contested this by filing Writ Petition (Civil) No. 22431 of 2025 on August 8, 2025, seeking to quash the demand. The court granted interim protection on August 14, 2025, which has been extended periodically.
The second, larger demand of about ₹2,410.90 crore was raised for the alleged shortfall in the subsequent 5th year (July 2024-July 2025). The company challenged this through Writ Petition (Civil) No. 31035 of 2025, filed on October 29, 2025, and received interim relief on November 21, 2025.
Both demands were raised under Rule 12A of the Minerals (Other than Atomic and Hydrocarbons Energy Minerals) Concession Rules, 2016 (MCR 2016), and involve the threat of appropriation of the company's performance security.
Latest Development and Company Statement
In today's hearing, the court extended the protective order for both petitions. This prevents the authorities from taking any coercive steps to recover the disputed amounts, totalling over ₹4,313 crore, until at least the next court date.
The disclosure was made by Parvatheesam Kanchinadham, Company Secretary and Chief Legal Officer of Tata Steel, in compliance with SEBI's Listing Obligations and Disclosure Requirements (LODR) Regulations.
Implications and Next Steps
The extension provides continued legal respite to Tata Steel as it contests the substantial claims. The outcome of these writ petitions is crucial, as it pertains to the interpretation of contractual dispatch obligations and could set a precedent for other mining leases. The financial impact, if any, will be contingent on the final judgment of the High Court.
All eyes will now be on the proceedings scheduled for next week, February 2, 2026.