Tata Steel Wins Relief of Over Rs 4,300 crore in Odisha Chromite Mine Case

In a major relief, Tata Steel has received a favourable judgement from the Orissa High Court in a dispute related to its Sukinda Chromite Block in Odisha. The Court ruled that penalties levied by the authorities for alleged shortfalls in mineral dispatch cannot be applied retroactively, giving the company significant relief from over Rs 4,300 crore in claims.

The issue is related to two demand letters issued in 2025 by the Deputy Director of Mines, Jajpur. The first demand letter, issued in July, raised a demand of Rs 1902,72,53,760 for alleged shortfalls in the dispatch of minerals from its Sukinda Chromite Block (July 2023-July 2024). The second demand letter issued in October demanded Rs 2410,89,66,881 for the shortfall in the dispatch of chrome ore (July 2024-July 2025). As per the demand letter, Tata Steel had violated Rule 12A of the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016.

Tata Steel filed writ petitions in the Orissa High Court to challenge the demand letters. The High Court granted interim relief to the company by stopping the authorities from taking any coercive actions.

On April 20, 2026, the High Court ruled in favour of Tata Steel, stating that the amendments to Rule 12 introduced in 2020 and 2021 are legal but cannot be applied retroactively. The court also held that the amendment to Rule 12A(2) about dispatching 80% of production does not attract penalties under sub-rules (1A) and (1B) of Rule 12A of MCR, 2016.

As a result, the Court cancelled both demand notices to the extent that they went against its judgement. The judgments give significant relief to Tata Steel and will also help other mining companies in future.