Tata Steel Files Petition In Calcutta HC For Loan Waiver From SDF
Tata Steel has filed a writ petition in the Calcutta High Court regarding the waiver of loans availed from the Steel Development Fund (SDF). In a disclosure to the stock exchange on Tuesday night, the company informed that the Calcutta High Court has admitted the petition on 2 April 2024.
According to Tata Steel, the filing of the petition follows the company's representation made to the Union of India (Ministry of Steel) on 28 March 2023. The representation sought a waiver of loans obtained from the SDF and the refund of the remaining balance in the fund, in compliance with directions from the High Court at Calcutta issued on 3 August 2022, and 3 January 2023.
However, the Union of India (Ministry of Steel) rejected Tata Steel's representation in a letter dated 29 December 2023, prompting the company to challenge the decision through a writ petition before the Calcutta High Court.
The case was heard on 2 April 2024, and Tata Steel has indicated that the proceedings will continue on 8 April 2024. The petition seeks relief against the Union of India (Ministry of Steel), SDF Managing Committee, Joint Plant Committee, and other relevant parties, as stated in the company's stock exchange filing.
As per Tata Steel's disclosure, the total outstanding loans (including principal and interest) amount to Rs 2,751.17 crore, as per the last annual audited financial statements. The company has assured stakeholders that it is taking all necessary measures to protect its interests in this matter.
This legal development underscores Tata Steel's proactive approach in addressing financial matters and underscores the significance of the case in the steel industry's landscape. The outcome of the petition will be closely monitored by stakeholders as it unfolds in the Calcutta High Court.
