New Delhi — Tata Steel has been served a demand notice of ₹1,755.10 crore by the District Mining Office in Jharkhand’s Ramgarh district, alleging excess coal extraction from its West Bokaro Colliery.
The notice states that the company mined approximately 1.62 crore metric tonnes of coal beyond permitted limits between FY2000-01 and FY2006-07. Issued on March 30 and received on April 3, the claim is based on legal principles established in the Common Cause vs Union of India ruling by the Supreme Court of India, which addressed illegal mining and excess production.
Responding to the development, Tata Steel said it disagrees with the demand, calling it unjustified and lacking merit. The company plans to challenge the notice through appropriate legal channels.
On the financial front, Tata Steel recently reported a strong performance, posting a consolidated net profit of ₹2,689 crore in the December quarter—significantly higher than the same period last year. Revenue also saw growth, reaching ₹57,002 crore.
However, compared to the previous quarter, profits and revenue saw a slight dip. The company reported an EBITDA of ₹8,309 crore, maintaining healthy operating margins.
Following the news, shares of Tata Steel showed minimal movement on the National Stock Exchange of India, closing nearly flat.
WIth inputs from IANS