Background and Chronology of Events
- April 2, 2024: Company filed a writ petition before the Hon'ble High Court of Calcutta regarding rejection of its representation for waiver of loans availed from Steel Development Fund (SDF), managed by Joint Plant Committee (JPC), Ministry of Steel. The company sought parity with SAIL (Steel Authority of India Ltd).
- May 24, 2024: Hon'ble High Court (Single Bench) dismissed the writ petition but granted liberty to approach JPC directly.
- Post-dismissal: Company filed an appeal against this order before the Hon'ble High Court of Calcutta (Division Bench), which remains pending.
- January 17, 2025: Company received a demand from the Ministry of Steel for payment towards outstanding SDF loan balance.
- During FY2026: Company discharged its liability towards JPC aggregating to ₹2,970 crore, paid without prejudice to its rights and contentions in the appeal.
Current Development
- Company filed Interim Application IA no. GA/2/2026 before Hon'ble High Court of Calcutta seeking injunction on JPC utilizing the ₹2,970 crore amount deposited by the company.
- The application was heard on September 17, 2026.
- September 18, 2026: Company received the court order dated September 17, 2026, which disposed of the interim application with the direction that until the appeal is disposed of, the fund (₹2,970 crore) shall not be utilized or disbursed to third parties.
Financial Impact
The company has already paid ₹2,970 crore to JPC during FY2026, which represents the discharged liability amount. The court order prevents utilization of these funds pending appeal outcome.