Tata Steel has received a demand letter for ₹2410.90 crore regarding a shortfall in chrome ore dispatch from its Sukinda Chromite Block for the period of July 23, 2024, to July 22, 2025. The company disputes the demand and intends to pursue legal remedies. An existing similar demand is already under interim stay from the Orissa High Court.
Demand for Mineral Dispatch Shortfall
Tata Steel has been issued a demand letter by the Office of Deputy Director of Mines, Jajpur, concerning an alleged shortfall in the dispatch of Chrome Ore from the Sukinda Chromite Block. This assessment covers the period from July 23, 2024, to July 22, 2025.
The demand, based on the sale value of the shortfall quantity and appropriation of performance security, amounts to ₹2410,89,66,881.
Company’s Response
Tata Steel contests the validity of the State’s demand, believing it lacks justification on both legal and factual grounds. The company plans to pursue appropriate legal remedies to challenge the demand.
Existing Legal Challenge
Tata Steel has previously challenged a similar demand amounting to ₹1902,72,53,760 related to the 4th year, filing a writ petition before the Orissa High Court. The Court has granted an interim stay, preventing coercive action by the government authorities. This interim order remains in effect until the next hearing date.
Source: BSE
