Tata Steel has received a ₹1,755.11 crore demand notice from the District Mining Office regarding alleged excess coal extraction at its West Bokaro Colliery between FY 2000-01 and FY 2006-07. The company has formally stated that it considers the demand unjustified and lacking a substantive basis. Tata Steel intends to challenge the notice by pursuing appropriate legal remedies through judicial or quasi-judicial forums to resolve the matter.
Details of the Mining Demand
The District Mining Office in Ramgarh, Jharkhand, issued a demand notice on March 30, 2026, which was received by the company on April 3, 2026. The notice alleges that the company extracted approximately 1,62,40,399 MT of mineral coal from its West Bokaro Colliery beyond permissible limits during a six-year period spanning 2000 to 2007.
Basis for the Notice
The authority has cited grounds similar to those established in the Supreme Court case Common Cause vs. Union of India (WPC No. 114 of 2014) to justify the claim. The cumulative financial implication of this alleged excess production is set at ₹1,755,10,54,029.
Company Stance and Next Steps
Management has firmly rejected the allegations, asserting that the demand notice lacks both justification and a substantive foundation. In response, the company has announced its intention to exercise its rights to seek legal remedies. Tata Steel plans to contest the demand before the relevant judicial or quasi-judicial authorities to protect its interests and ensure a fair resolution to the dispute.
Source: BSE
