Tata Steel served ₹1,755cr demand notice for illegal coal extraction
What's the story
Tata Steel has been served a ₹1,755.10 crore demand notice by the District Mining Office in Ramgarh, Jharkhand. The notice accuses the company of illegally extracting over 1.62 crore metric tons of coal from its West Bokaro Colliery between FY2000-01 and FY2006-07. The allegations are similar to those made in a Supreme Court case regarding illegal mining activities.
Legal response
Tata Steel to contest allegations
In a regulatory filing today, Tata Steel said it received the notice on April 3. The company has contested the allegations and doesn't agree with the basis of the demand. The management believes that the demand lacks justification and substantive basis, it said in its filing. Tata Steel plans to challenge this notice before appropriate judicial or quasi-judicial forums.
Case reference
Grounds of demand notice similar to SC case
The demand notice against Tata Steel is based on grounds similar to those cited by the Supreme Court in the Common Cause vs. Union of India case (Writ Petition No. 114 of 2014). The landmark judgment dealt with issues of illegal mining and excess production, making it a relevant reference point for this current case against Tata Steel.