The Calcutta High Court has issued an interim injunction preventing the Joint Plant Committee (JPC) from utilizing ₹2,970 crore deposited by Tata Steel Limited. According to the latest disclosure from Tata Steel Limited, the court order was received on September 18, 2026, directing that the funds shall not be disbursed to third parties until the company's pending appeal is resolved. The company had filed Interim Application GA/2/2026 before the Calcutta High Court seeking an injunction on the JPC utilizing the ₹2,970 crore deposited towards its SDF loan liability. The court heard the matter on September 17, 2026, with the order disposing of the interim application with specific directions mandating that till the appeal is disposed of, the fund shall not be utilised or disbursed to third parties.
The court order stems from Tata Steel's long-standing dispute over SDF loan waivers. As reported by CNBC TV18, the company filed a writ petition before the Calcutta High Court on April 2, 2024, against the rejection of its representation seeking waiver of loans availed from the SDF. On May 24, 2024, the Single Bench of the Calcutta High Court dismissed Tata Steel's writ petition while giving the company liberty to approach the JPC. The company subsequently filed an appeal against this order before the Division Bench of the Calcutta High Court, which is currently pending. This legal development stems from ongoing litigation concerning loans availed by Tata Steel from the Steel Development Fund (SDF), managed by the JPC under the Ministry of Steel.
According to CNBC TV18 reports, Tata Steel received a demand from the Ministry of Steel on January 17, 2025, to make payment towards the outstanding balance of the SDF loan. During FY2026, the company discharged its liability towards the JPC aggregating to ₹2,970 crore, without prejudice to its rights and contentions in the appeal. The company had earlier sought a waiver of loans availed from the SDF, 'in parity with SAIL', or Steel Authority of India Ltd. This payment was made during FY26 without prejudice to its rights and contentions in the ongoing appeal, with the management believing interim protection was necessary to safeguard these deposited amounts.
The latest disclosure was made by Tata Steel Limited in compliance with Regulations 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. As reported by CNBC TV18, shares of Tata Steel Ltd ended at ₹184.75, down by ₹3.25, or 1.73%, on the BSE following the court development. The company's management believed that interim protection was necessary to safeguard the amount deposited by the company with the JPC, leading to the filing of the interim application. This disclosure was made in compliance with Regulations 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, providing stakeholders greater clarity on the treatment of the disputed loan amount while the broader appeal remains pending.
