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Business News›Industry›Ind'l Goods/Svs›Steel›Tata Steel gets interim relief in Rs 1,755 crore Jharkhand coal mining demand case

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Tata Steel gets interim relief in Rs 1,755 crore Jharkhand coal mining demand case

Synopsis

Tata Steel received interim relief from a Rs 1,755 crore demand by Jharkhand. The Ministry of Coal's Revisional Authority will consider the company's challenge. Authorities are barred from taking coercive action against Tata Steel for now. This order protects the company while its dispute is pending. The underlying demand remains under review by the Revisional Authority.

Reuters

New Delhi: Tata Steel has received interim relief in a dispute over a Rs 1,755 crore demand raised by Jharkhand government, with the Revisional Authority under the Ministry of Coal directing the state authorities not to take any coercive action against the company while its challenge to the demand is pending.



In an exchange filing on Tuesday, Tata Steel said the Revisional Authority has also admitted its revision application challenging the demand for consideration.



The case relates to alleged excess extraction of coal from Tata Steel's West Bokaro Colliery in Jharkhand during FY2000-01 to FY2006-07.

The District Mining Office (DMO), Ramgarh, had issued a demand notice dated March 30, 2026, seeking an aggregate amount of Rs 1,755.10 crore from the company. Tata Steel received the notice on April 3.



According to the filing, the DMO alleged that Tata Steel had extracted approximately 1.62 crore metric tonnes of coal beyond permissible limits at the West Bokaro Colliery during the seven-year period. The demand was raised on grounds similar to those noted by the Supreme Court in the Common Cause vs Union of India case.




Tata Steel, however, disputed the demand and maintained that it "lacks justification and substantive basis".

The company subsequently filed Revision Application before the Revisional Authority, Ministry of Coal, on April 24, challenging the demand notice. The State of Jharkhand, through its Secretary, Department of Mines and Geology, and the District Mining Officer, Ramgarh, are the respondents in the proceedings.

The Revisional Authority heard Tata Steel's application on August 20, and the company received a copy of its order on August 24.



"The Revision Application filed by Tata Steel Limited ('Applicant') has been admitted for consideration," the company said, citing the order.



It further said the respondents have been directed "not to take any coercive steps against the Applicant pursuant to the impugned demand notices/letters, during the pendency of the present Revision Application."



The order provides Tata Steel protection from enforcement action for now, but does not set aside the Rs 1,755 crore demand. The underlying dispute will remain before the Revisional Authority until it decides the company's challenge. The latest order therefore represents an interim development rather than a final decision in the case.

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