Odisha High Court granted interim relief to Tata Steel against a Rs. 1,902.72 crore demand notice. The demand notice was issued by Odisha State Mining Authorities (Jajpur mining office) over alleged short dispatch from Sukinda Chromite Block. The court barred authorities from coercive action against the company until the next hearing on 2nd September.
Mining Authorities Alleged Violation of Mineral Concession Rules, 2016
The dispute began on 3rd July 2025 when the office of the Deputy Director of Mines, Jajpur, issued a notice alleging that Tata Steel dispatched lower quantities of minerals than mandated under its Mine Development and Production Agreement for the July 2023 to July 2024 period. Officials argued that the shortfall violated Rule 12-A of the Mineral Concession Rules, 2016, which prevents companies from hoarding resources instead of utilizing them. On this basis, the department sought to invoke and forfeit the performance security deposited by Tata Steel as a compliance guarantee.
Also Read: Tata Steel in Trouble, Rs. 1902 Crores Notice Issued for Mineral Dispatch Lapse in Odisha
Tata Steel Challenged the Demand Notice in Court
Tata Steel filed a petition before the Odisha High Court on 8th August, contesting the validity of the demand and calling it unfounded. The court has clubbed the matter with similar pending cases, scheduled for hearing on 2nd September. Industry experts consider the case important as it could affect how mining companies follow production and dispatch rules. Tata Steel, which has disclosed the development to SEBI as per listing regulations, has asserted that it will continue to defend its position through legal channels.
Also Read: Parliament Cleared Mines and Minerals (Development and Regulation) Amendment Bill 2025
Join the WhatsApp Group of Business Jharkhand to Stay tuned for all the latest updates of industrial-political developments in Jharkhand.
