Tata Steel Faces ₹1,755 Crore Demand for Alleged Excess Coal Extraction in Jharkhand
Tata Steel gets Rs 1,755 crore demand notice from Jharkhand mining office over alleged excess coal extraction
The Economic TimesImage: The Economic Times
Tata Steel Limited has received a demand notice of ₹1,755.10 crore (approximately $189 million) from the District Mining Office in Ramgarh, Jharkhand, for allegedly extracting excess coal from its West Bokaro Colliery between FY2000-01 and FY2006-07. The company disputes the claims and plans to contest the notice legally.
- 01Tata Steel received a ₹1,755.10 crore demand notice from Jharkhand's mining office.
- 02The notice alleges excess coal extraction of approximately 1.62 million metric tonnes.
- 03The claims are based on precedents from a Supreme Court case regarding illegal mining.
- 04Tata Steel contests the allegations and plans to seek legal remedies.
- 05The disclosure complies with Indian regulatory requirements for listed companies.
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Tata Steel Limited, a major steel producer in India, has been issued a demand notice amounting to ₹1,755.10 crore (about $189 million) by the District Mining Office in Ramgarh, Jharkhand. This notice pertains to allegations of excess coal extraction from the company's West Bokaro Colliery during the period from FY2000-01 to FY2006-07. The notice, dated March 30, 2026, claims that Tata Steel extracted around 1.62 million metric tonnes of coal beyond permissible limits. The basis for this demand is similar to the issues raised in the Supreme Court case of Common Cause vs. Union of India regarding illegal mining practices. Tata Steel has publicly stated its disagreement with the allegations, asserting that the demand lacks justification and substantive basis. The company plans to challenge the notice through appropriate legal channels, ensuring compliance with the Securities and Exchange Board of India’s Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.
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If Tata Steel is required to pay the demand, it could affect its financial position and potentially impact local employment and economic activities tied to the company.
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