Tata Steel Seeks ₹757.14 Crore in Compensation Over Cancelled Coal Block

Mumbai, May 28, 2025: Tata Steel Ltd (NSE: TATASTEEL, BSE: 500470) has filed a fresh writ petition in the Delhi High Court, seeking compensation of ₹757.14 crore, along with applicable interest. The claim pertains to the cancellation of the New Paratpara Coal Block, initially allocated in 2006 to Bhushan Steel Ltd, which was later acquired by Tata Steel.

Background

The New Paratpara Coal Block was originally allotted to Bhushan Steel, later known as Tata Steel BSL Ltd, after Tata Steel acquired the company through the insolvency and bankruptcy resolution process in May 2018. The Hon’ble Supreme Court, in a landmark 2014 judgment, cancelled the coal block allocation as part of a broader review. Although part of the block was subsequently auctioned, the company had already incurred significant development costs by that time.

Under the Coal Mines (Special Provisions) Act, 2015, the new allottees of cancelled coal blocks are required to compensate the previous developers for expenses already undertaken. Despite this provision, Tata Steel reports that the reimbursement remains outstanding. Initially, the company had approached the Delhi High Court with a writ petition, which was later withdrawn due to evolving regulatory conditions. Tata Steel retained the liberty to file a fresh claim, which it has now exercised.

Legal Proceedings

The newly filed petition, heard on May 26, 2025, seeks recovery of ₹757.14 crore, along with applicable interest, for unreimbursed development expenses. The Delhi High Court has issued a notice in the matter, returnable on September 21, 2025.

The respondents named in the case include:

• Union of India (Ministry of Coal)
• Nominated Authority (Ministry of Coal)
• Odisha Industrial Infrastructure Development Corporation
• Department of Steel & Mines, Government of Odisha

Regulatory Compliance

Tata Steel has disclosed the ongoing litigation in compliance with the Securities and Exchange Board of India’s (SEBI) Listing Obligations and Disclosure Requirements (LODR), specifically under Regulations 30 and 51. The company has highlighted the potential material financial impact this compensation, if granted, could have on its books.

Disclaimer: This content is only for informational purpose. It does not make any recommendation to act or invest. Please read the offer documents carefully before investing. Investments are subject to market risks and other risks. There is no guarantee of the actual returns that will be given.

REF: https://nsearchives.nseindia.com/corporate/SAKSHIKAPUR_27052025153243_NSEBSEMLfinal.pdf