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Tata Steel SDF Fund: Calcutta High Court Restrains JPC From Utilizing Funds

Nikunj Parikh - Mumbai Bureau Published Sep 18, 2026, 02:10 PM

The Calcutta High Court ordered the Joint Plant Committee not to utilize or disburse ₹2,970 crore paid by Tata Steel toward Steel Development Fund loans until the company's appeal is resolved. Tata Steel disclosed this interim protection under SEBI regulations, ensuring the deposited funds remain secure during ongoing legal proceedings.

KOLKATA - In a significant legal development for the steel sector, the Calcutta High Court ordered the Joint Plant Committee (JPC) on September 17, 2026, not to utilize or disburse funds amounting to ₹2,970 crore paid by Tata Steel Limited towards Steel Development Fund (SDF) loans. The interim directive, received by the company on September 18, 2026, ensures that the deposited capital remains intact while a division bench reviews Tata Steel's ongoing appeal. This court ruling provides interim financial protection to the corporate entity amidst a long-standing dispute over loan obligations managed by the Ministry of Steel.

Background and Litigation Timeline

The legal dispute stems from historical loan obligations under the Steel Development Fund, managed by the Joint Plant Committee under the Ministry of Steel. Tata Steel previously filed a writ petition before the Calcutta High Court on April 2, 2024, challenging the rejection of its representation for a loan waiver in parity with Steel Authority of India Limited (SAIL).

Although a single bench dismissed the writ petition on May 24, 2024, granting liberty to approach the JPC, Tata Steel pursued further legal remedies by filing an appeal before the Division Bench of the High Court. Subsequently, following a demand from the Ministry of Steel on January 17, 2025, Tata Steel discharged liabilities aggregating to ₹2,970 crore during the 2026 financial year without prejudice to its rights in the ongoing appeal.

Calcutta High Court Rejects Injunction Request While Protecting Funds

Seeking to safeguard the capital deposited during the appellate proceedings, Tata Steel filed an interim application (IA no. GA/2/2026) before the Calcutta High Court, requesting an injunction on the JPC's utilization of the funds.

According to official disclosures, the high court heard the application on September 17, 2026. While disposing of the interim application, the court explicitly directed that the funds shall remain unutilized and protected from disbursement to third parties until the final disposal of the core appeal.

Official Sources Section

The information detailed in this report is based on official disclosures and regulatory filings made by Tata Steel Limited under Regulations 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

"As per the order of the Hon'ble High Court of Calcutta dated September 17, 2026 received by the Company today i.e. September 18, 2026, Hon'ble High Court has disposed of the interim application with the direction that till the appeal is disposed of, the fund shall not be utilised or disburse to third parties." — Tata Steel Limited Corporate Disclosure

Why It Matters

The court's restriction on the Joint Plant Committee ensures financial clarity and asset preservation for Tata Steel while corporate litigations proceed. For investors and market stakeholders, the ruling averts immediate financial exposure or third-party disbursement of the substantial ₹2,970 crore deposit, maintaining status quo until the division bench delivers a final verdict on the Steel Development Fund loan waiver dispute.

Key Facts at a Glance

Tata Steel deposited ₹2,970 crore towards outstanding Steel Development Fund (SDF) loan liabilities during the 2026 financial year.
The Calcutta High Court disposed of interim application IA no. GA/2/2026 on September 17, 2026.
The court ordered that the Joint Plant Committee (JPC) cannot utilize or disburse the funds to third parties until the appeal is resolved.
The company made the regulatory disclosure in compliance with SEBI Listing Regulations to BSE Limited and the National Stock Exchange of India Limited.

FAQ Section

1. What is the Steel Development Fund (SDF)?

The Steel Development Fund comprises loan obligations managed by the Joint Plant Committee under the Ministry of Steel.

2. Why did Tata Steel deposit ₹2,970 crore?

Tata Steel discharged this amount during FY2026 following a formal demand issued by the Ministry of Steel on January 17, 2025, while maintaining its legal rights in a pending appeal.

3. What did the Calcutta High Court decide regarding the funds?

The court ruled that the Joint Plant Committee cannot use, utilize, or disburse the ₹2,970 crore deposit to third parties until the company's appeal is fully disposed of.