Tata Steel has received a Demand Letter regarding an assessment of shortfall in dispatch of Chrome Ore from the Company’s Sukinda Chromite Block. The demand, amounting to ₹2410,89,66,881/-, relates to an alleged violation of mineral concession rules. Tata Steel has filed a Writ petition before the Hon’ble High Court of Orissa at Cuttack seeking to quash the Demand Letter.
Demand Letter Received
Tata Steel Limited (‘Company’) received a Demand Letter issued by the Office of Deputy Director of Mines, Jajpur (‘Demand Letter’) on October 3, 2025. The letter pertains to the assessment of a shortfall in the dispatch of Chrome Ore from the Company’s Sukinda Chromite Block.
Details of the Demand
The demand relates to the 5th year of the Mine Development and Production Agreement (i.e., July 23, 2024 through July 22, 2025). The alleged violation is of Rule 12A of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016, resulting in an appropriation of performance security.
The alleged shortfall in mineral dispatch from the Sukinda Chromite Block has resulted in an aggregate demand of ₹2410,89,66,881/-. This is based on the sale value of the shortfall quantity and appropriation of performance security.
Legal Action Initiated
The Company has filed a Writ petition before the Hon’ble High Court of Orissa at Cuttack on October 29, 2025, seeking the quashing of the Demand Letter.
Respondents to the Writ Petition
The respondents to the Writ Petition are listed as:
Financial Implications
The expected financial implications due to compensation/penalty is valued at ₹2410,89,66,881/-.
Source: BSE