Tata Steel Gets ₹1,755 Crore Notice, Alleged 1.62 Crore MT Excess Coal Mining Under Scrutiny
· Free Press Journal
New Delhi: Tata Steel has received a demand notice of Rs 1,755.10 crore, which may impact its stock movement when the market opens on April 6. The notice is related to alleged excess coal mining in Jharkhand.
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Rs 1,755 Crore Demand Notice Details
The notice has been issued by the District Mining Office (DMO), Ramgarh, Jharkhand. As per the company’s regulatory filing, the demand amounts to Rs 1,755,10,54,029.
It is linked to operations at the West Bokaro Colliery, where the company has been accused of extracting coal beyond the permitted limits.
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According to the notice, Tata Steel allegedly mined around 1,62,40,399 metric tonnes of coal beyond the approved limits. The period under scrutiny is from financial year 2000-01 to 2006-07.
The demand is based on principles similar to those laid down in the Common Cause vs. Union of India case, which dealt with illegal mining and excess production.
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The demand notice is dated March 30, 2026, and was received by the company on April 3, 2026. The authorities have calculated the penalty based on the alleged excess production during the specified period.
Company Response
Tata Steel has strongly contested the demand. The company stated that the notice lacks proper justification and is not supported by valid grounds.
It has clarified that it will take appropriate legal action and challenge the demand before relevant judicial or quasi-judicial authorities.
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The development could influence investor sentiment. Currently, Tata Steel’s stock is trading at Rs 193.50.
In terms of performance, the stock has declined 0.74% over the past five days and 3.52 percent in the last one month. However, it has gained 13.78% over the past six months.
What Investors Should Watch
Market participants will closely monitor how this issue unfolds, as legal challenges and regulatory developments could affect the stock in the near term. Any clarity from the company or authorities may drive the next move in the share price.
Disclaimer: This content is for informational purposes only and not investment advice. Investors should consult financial advisors before making decisions. Market investments are subject to risks, including possible loss of capital.