On January 17, 2025, Tata Steel Limited took a significant step in its ongoing legal battle concerning the imposition of tax on mineral-bearing land by the State of Odisha. The Company has filed a Curative Petition before the Hon'ble Supreme Court of India, requesting the invocation of the Court's extraordinary jurisdiction in respect of the order dated September 24, 2024. This order, passed by the Constitutional Bench, had dismissed several review petitions regarding the tax imposition on mineral rights in Odisha.

Background of the Dispute: Odisha Tax on Mineral Rights

The issue dates back to earlier disclosures by Tata Steel, which included updates on the legal proceedings regarding the taxation of mineral rights under the Orissa Rural Infrastructure and Socio-Economic Development Act, 2004. The Supreme Court’s judgment on July 25, 2024, affirmed that the Mines and Minerals (Development and Regulation) Act of 1957 did not deprive the states of their power to levy taxes on mineral rights.

Subsequent orders from the Supreme Court, including one on August 14, 2024, clarified certain matters, setting the stage for further proceedings. The case continued to draw attention due to its implications on the rights of states to levy taxes on minerals and its potential impact on similar cases in India.

Tata Steel's Curative Petition: Seeking Review of the September 2024 Order

Following the dismissal of the review petitions on September 24, 2024, Tata Steel has now filed a Curative Petition. This move is in line with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring full compliance with legal procedures.

The Curative Petition specifically seeks the invocation of the extraordinary jurisdiction of the Hon'ble Supreme Court under Order XLVIII, Rule 1 of the Supreme Court Rules, 2013. This allows the Supreme Court to consider the petition in light of new arguments or overlooked legal aspects that may justify revisiting the case. Tata Steel’s petition reflects their determination to resolve the matter concerning the imposition of tax on its mineral-bearing land in Odisha.

Impact on Tata Steel and the Industry

The legal outcomes of this case hold substantial implications for Tata Steel and the broader mining industry in India. The decision regarding the tax imposition on mineral rights could set a precedent for other industries and affect how state governments may approach taxation on natural resources in the future.

As part of its ongoing efforts to protect its interests, Tata Steel continues to update its stakeholders regarding the legal progress, in line with the regulatory requirements for transparency and disclosure. This curative petition is another step in its strategy to safeguard its operations from what it perceives as an unfair imposition of taxes by the Odisha government.

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