Tata Steel has received a demand notice of Rs 1,902 crore. It is associated with revised assessment of alleged decrease in mineral dispatches from the company’s wounded chromite block in Odisha. The demand letter has been released by the Deputy Director of Mines of Jajpur, Odisha. The company has told the stock markets about this and said that it will challenge it.
Tata Steel said in the exchange filing, “The company has received a demand letter from the office of Jajpur’s Deputy Director of Mines in the fourth year in terms of mine development and production agreement (from 23 July 2023 to 22 July 2024) from the office of Deputy Director of Mines of Jajpur for decrease in the dispatch of minerals from the well -known chromite block.” Tata Steel is accused of violation of Rule 12A of Consignment Rules, 2016, Minerals (apart from nuclear and hydrocarbon energy minerals).
The demand made in the letter is a total of Rs 19,02,72,53,760. According to Tata Steel, her management believes that the demands of the Odisha state lack justification and solid base. The company will challenge the demand letter on the appropriate platform.
A notice of 1000 crores was received in June
In June, Tata Steel received a show cause notice lower tax demand notice for Rs 1000 crore. The company was issued by the Commissioner (AUDIT) of the Central Tax (Audit) of Neetis Ranchi, accusing the company of incorrectly taking advantage of the input tax credit between the financial year 2018-19 to 2022-23.
Share falls in fall
On July 4, Tata Steel shares closed at Rs 163, nearly 2 percent on BSE. The company’s market cap is Rs 2 lakh crore. The stock has risen 18 percent in 6 months. It has seen a rise of 7 percent in 2 weeks. The company had a 33.19 percent stake in the company till the end of March 2025. In June, JM Financial gave a target price of Rs 180 per share with a BUY rating for Tata Steel shares.
