Tata Steel seeks ₹757.14 crore in coal block case

Published 27/05/2025, 11:50

MUMBAI - Tata Steel (NSE:TISC) Limited has filed a fresh writ petition with the Delhi High Court seeking compensation of ₹757.14 crore plus interest over the cancellation of a coal block allocation, according to a statement released to the London Stock Exchange (LON:LSEG). The matter, involving the company’s claim for pending dues following the cancellation of the New Paratpara Coal Block allocation by the Supreme Court of India in 2014, was heard by the court on Monday.

The coal block was initially allocated to Bhushan Steel Limited, now renamed Tata Steel BSL Limited, in 2006. Bhushan Steel was acquired under insolvency proceedings in May 2018 and subsequently merged into Tata Steel on November 11, 2021. The Supreme Court’s decision led to an auction of a portion of the coal block, and as per the Coal Mines (Special Provisions) Act of 2015, compensation was due to Bhushan Steel for development expenses incurred.

The company had previously filed a writ petition for this compensation but withdrew it with the option to refile. The new petition includes a request for compensation and interest due to the cancellation and non-payment of dues. The respondents in the case are the Union of India (Ministry of Coal), Nominated Authority (Ministry of Coal), Odisha Industrial Infrastructure Development Corporation, and the Department of Steel & Mines (Government of Odisha).

After the initial hearing, the High Court ordered that notice be issued, with a returnable date set for September 21, 2025. The financial implications of the litigation, as stated in the petition, amount to ₹757.14 crore in addition to applicable interest.

This legal move by Tata Steel is part of the company’s efforts to seek redress for the financial impact resulting from the coal block cancellation. The disclosure of this litigation is made 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. This information is based on a press release statement.

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