Tata Steel Seeks Rs 757-Crore Compensation Over Cancelled Odisha Coal Mine
The Supreme Court had canceled the allocation of the New Paratpara Coal Block in Odisha in 2014 amid the coal scam allegations of the UPA era.
Tata Steel Ltd. said on Tuesday it filed a fresh writ petition before the Delhi High Court seeking relief, including compensation of Rs 757.1 crore along with interest, for cancellation of an Odisha coal block and non-payment of pending dues to the company.
Formerly known as Bhushan Steel Ltd. (now Tata Steel BSL Ltd. and merged with the parent in November 2021), the company was allocated the New Paratpara Coal Block in Odisha in 2006 and invested in its development.
However, the Supreme Court canceled the allocation in 2014 amid the coal scam allegations of the UPA era, leading to a subsequent auction of part of the block.
Under the Coal Mines (Special Provisions) Act, 2015, Bhushan Steel was entitled to compensation from the new allottee for its development expenses. To claim this, Tata Steel as the new owner filed a writ petition with the Delhi High Court.
Due to changes in regulations and circumstances over time, the company requested to withdraw the petition, which was granted with the option to refile in the future.
The fresh petition was listed and heard by the court on Monday, which will hear the matter again on Sept. 21, according to an exchange filing.
In 2018, Tata Steel acquired Bhushan Steel through its subsidiary Bamnipal Steel under the Insolvency and Bankruptcy Code. The acquisition involved paying Rs 35,200 crore to Bhushan Steel's financial creditors and an additional Rs 1,200 crore over 12 months to operational creditors.
