Tata Steel Gets Interim Protection Over Rs 2,970 Crore SDF Loan Payment:

HC has directed that Tata Steel’s Rs 2,970 crore payment towards its outstanding SDF loan shall not be utilised or disbursed to third parties until its pending appeal is decided.

HC Bars Disbursement to Third Parties

Saloni Kumari

Sep 19, 2026

Last update on Sep 19, 2026

Tata Steel Limited, in furtherance of earlier two disclosures dated April 2, 2024 and May 24, 2024, made to the National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE), has issued another disclosure dated September 18, 2026.

The company has informed that the Calcutta High Court has directed that Rs 2,970 crore deposited by the company towards its outstanding Steel Development Fund (SDF) loan shall not be utilised or disbursed to third parties until the company’s pending appeal is decided.

The matter relates to loans availed by Tata Steel from the SDF, which is managed by the Joint Plant Committee (JPC) under the Ministry of Steel. On April 2, 2024, Tata Steel filed a writ petition before the Calcutta High Court challenging the rejection of its representation seeking waiver of the SDF loans, similar to the relief granted to Steel Authority of India Limited (SAIL).

The Single Bench of the Calcutta High Court dismissed Tata Steel’s writ petition on May 24, 2024, while the company was allowed to approach the JPC. Tata Steel subsequently pursued further legal remedies and filed an appeal before the Division Bench of the Calcutta High Court. The appeal is currently pending.

On January 17, 2025, Tata Steel received a demand from the Ministry of Steel for payment of the outstanding SDF loan balance. The company paid Rs 2,970 crore to the JPC towards the liability for Financial Year 2025-26. The payment was made without prejudice to Tata Steel’s rights and contentions in the pending appeal.

To protect the amount deposited with the JPC, Tata Steel filed an Interim Application, IA No. GA/2/2026, before the Calcutta High Court seeking an injunction against the utilisation of the Rs 2,970 crore.

The interim application was heard on September 17, 2026. In its order dated September 17, 2026, received by Tata Steel on September 18, the High Court disposed of the application and directed that the funds shall not be utilised or disbursed to any third party until the pending appeal is disposed of.

Tata Steel has made the aforementioned disclosure under Regulations 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

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Saloni Kumari

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Saloni is a Content Writer with 2+ years of experience at studycafe.in. She writes legal, taxation, and finance related content including GST, Income Tax etc. Skilled in translating complex judicial pronouncements and regulatory developments into clear, and reader-friendly articles. Experienced in covering judgements of ITAT, High Court, GSTAT, and news related to Income Tax, GST, and corporate law. She can be reached at [email protected].