REG - Tata Steel Limited - Disclosure of Material Litigation

TATA SteelAnnouncement

27/05/2025 11:45

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RNS Number : 2521K  Tata Steel Limited  27 May 2025

 

 

 

 

 
 
 

May 27, 2025

 

London Stock Exchange

London

 

Dear Sir, Madam,

 

Sub: Disclosure under Regulations 30 and 51 of Securities and Exchange Board
of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

 

This has reference to the aforementioned subject.

 

Background:

 

Erstwhile Bhushan Steel Limited (renamed as Tata Steel BSL Limited, which was
acquired under the insolvency and bankruptcy resolution process in May 2018
and subsequently amalgamated into and with Tata Steel Limited effective
November 11, 2021) had been allocated New Paratpara Coal Block ('Coal Block')
in 2006 and had made necessary expenses towards development of the Coal Block.
In 2014, the Hon'ble Supreme Court of India cancelled the allocation of the
Coal Block, followed by subsequent auction of part of the Coal Block. In terms
of the provisions of the Coal Mines (Special Provisions) Act, 2015,
compensation was payable to erstwhile Bhushan Steel Limited for the expenses
made towards development of the Coal Block by the subsequent allottee, which
necessitated filing of a Writ Petition before the Hon'ble High Court of Delhi,
inter alia, seeking the aforesaid pending compensation. Due to passage of time
and owing to changes in regulations as well as circumstances of the matter,
the Company filed an application before the Hon'ble High Court of Delhi for
withdrawing the said Writ Petition. The Writ Petition was subsequently
withdrawn with a liberty to file afresh.

 

Present Status:

 

The Company has now filed a fresh Writ Petition before the Hon'ble High Court
of Delhi seeking relief including compensation of ₹757.14 crore along with
interest, for cancellation of the Coal Block and non-payment of pending dues
to the Company. The matter was listed and heard by the Hon'ble High Court of
Delhi on May 26, 2025. Post hearing the Hon'ble Court was pleased to order
issuance of Notice returnable on September 21, 2025.

 

The details of the litigation as required under the provisions of the
Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 ('SEBI Listing Regulations') are provided in
the Annexure enclosed herewith.

 

This disclosure is being made by the Company in compliance with Regulations 30
and 51 read with Schedule III of the SEBI Listing Regulations.

 

This is for your information and records.

 

Thanking you.

 

Encl.: Annexure

 

Annexure

 

 SN  Particulars                                                                  Details
 1   Brief details of litigation viz. name(s) of the opposing party, court/       Erstwhile Bhushan Steel Limited (renamed as Tata Steel BSL Limited, which was
     tribunal/ agency where litigation is filed, brief details of                 acquired under the insolvency and bankruptcy resolution process in May 2018
     dispute/litigation.                                                          and subsequently amalgamated into and with Tata Steel Limited effective
                                                                                  November 11, 2021) had been allocated New Paratpara Coal Block ('Coal Block')
                                                                                  in 2006 and had made necessary expenses towards development of the Coal
                                                                                  Block. In 2014, the Hon'ble Supreme Court of India cancelled the allocation
                                                                                  of the Coal Block, followed by subsequent auction of part of the Coal Block.
                                                                                  In terms of the provisions of the Coal Mines (Special Provisions) Act, 2015,
                                                                                  compensation was payable to erstwhile Bhushan Steel Limited for the expenses
                                                                                  made towards development of the Coal Block by the subsequent allottee, which
                                                                                  necessitated filing of a Writ Petition before the Hon'ble High Court of Delhi,
                                                                                  inter alia, seeking the aforesaid pending compensation. Due to passage of time
                                                                                  and owing to changes in regulations as well as circumstances of the matter,
                                                                                  the Company filed an application before the Hon'ble High Court of Delhi for
                                                                                  withdrawing the said Writ Petition. The Writ Petition was subsequently
                                                                                  withdrawn with a liberty to file afresh.

                                                                                  The Company has now filed a fresh Writ Petition before the Hon'ble High Court
                                                                                  of Delhi seeking relief including compensation of ₹757.14 crore along with
                                                                                  interest, for cancellation of the Coal Block and non-payment of pending dues
                                                                                  to the Company. The respondents to the Writ Petition are:

                                                                                  1.   Union of India (Ministry of Coal)

                                                                                  2.   Nominated Authority (Ministry of Coal)

                                                                                  3.   Odisha Industrial Infrastructure Development Corporation (Government of
                                                                                  Odisha Undertaking)

                                                                                  4.   Department of Steel & Mines (Government of Odisha)

                                                                                  The matter was listed and heard by the Hon'ble High Court of Delhi on May 26,
                                                                                  2025. Post hearing the Hon'ble Court was pleased to order issuance of Notice
                                                                                  returnable on September 21, 2025.
 2   Expected financial implications, if any, due to compensation, penalty etc./  ₹757.14 crore + applicable interest
     Quantum of Claims

 

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