Jamshedpur: Tata Steel asked for compensation of 757 crores when coal block is canceled

Tata Steel claimed compensation of Rs 757.1 crore in the Delhi High Court for the award of coal mine in Odisha. The Supreme Court canceled the award of the mine due to the allegations of coal fraud. Tata Steel is now demanding compensation from the new Mine Owner for Development Expenditure. The next trial of the case will be held on September 21. Jagran Correspondent, Jamshedpur. Tata Steel claimed a remuneration of Rs 757.1 crore in the Delhi High Court for the award of coal mines in Odisha. The mine was received by Bhushan Steel earlier in 2006, which was acquired by Tata Steel in 2018. The Supreme Court canceled the award of the mine due to the allegations of coal fraud. Now Tata Steel needs compensation for development costs of the new mine owner. What is the case of coal mine? In 2006, Bhushan Steel (now Tata Steel BSL) was awarded the new pathpara coal mine of Odisha. The company has invested a lot of money to develop this mine. But in 2014, the Supreme Court canceled the award of this mine amid the allegations of coal fraud. After this, part of the mine was given to the new owner via the auction. According to the rules, the old owner must receive compensation for the amount spent on developing the new owner. Tata Steel is now demanding this compensation. Why did Tata Steel go to court? Tata Steel had earlier filed a remuneration petition in the Delhi High Court. But due to changes in the rules and other reasons, the company withdrew the old petition. The court allowed him to submit a new petition in the future. Now Tata Steel has submitted a new petition with the demand for Rs 757.1 crore and interest. The next trial will be held on September 21. Bhushan Steel merged with Tata Steel in 2018 and bought Tata Steel Bhushan Steel for Rs 35 thousand 200 crore through its subsidiary Bamnipal Steel. The agreement took place under the insolvency process, in which Tata Steel Rs 35 thousand 200 crore to the financial creditors of Bhushan Steel and Rs 1200 crore paid to the operating creditors. In November 2021, Bhushan steel merged with Tata steel. Now Tata is demanding old rights and compensation related to this mine. What does the law say? In accordance with the SPECIAL Provision Act made in 2015, if the award of a mine is canceled, the old owner must receive compensation for the amount spent on the development of the mine in the development of the mine. Tata Steel claims to have invested a lot in the development of the mine, which he has not yet received. The company also demanded interest from the court, along with this amount. What will happen next? The Delhi High Court will have heard the case on September 21. Tata Steel hopes the court will make a decision in their favor and that they will receive compensation. The matter is not only important for Tata stealing, but also for other cases related to the granting of coal mine. It shows how complicated the legal process can be to protect the rights of old investors. The 2014 Supreme Court canceled the award of 204 coal mines due to the coal fraud. The new Palapara mine was also one of them. The question for Tata Steel’s petition and compensation is related to the case. The company says that it has invested a lot in the development of the mine and that it must get compensation under the law.