Tata Steel’s share price slipped a little over 1% on Dec 26 after a Dutch court was told its subsidiaries could face a €1.4 bn claim over harmful emissions.
Legal claim in the Netherlands
Residents near Tata Steel’s plants in Velsen‑Noord, represented by the group Stichting Frisse Wind (SFW), have filed a collective action under Dutch law. They allege the company’s operations released hazardous substances that lowered local property values and increased health risks.
- Claim amount: €1.4 bn (about Rs 14,810 crore).
- Legal basis: Dutch Act on Collective Settlement of Mass Claims (WAMCA).
- Venue: District Court North Holland, Haarlem.
- Primary allegations: harmful emissions and reduced enjoyment of homes.
Company’s response
Tata Steel Netherlands (TSN) says the claim is “unsubstantiated and speculative.” The firm has not yet seen the evidence SFW intends to rely on but believes it has strong grounds to defend the case.
- TSN claims SFW lacks admissible evidence.
- The company highlights investments under its Roadmap+ program that have improved local air quality over the past five years.
- TSN ranks among the most CO₂‑efficient blast‑furnace steel producers globally, well below European averages.
Effect on the stock
Following the news, Tata Steel’s shares fell to Rs 167.82, making it the biggest loser on the Nifty 50 index that day.
- Six‑month gain: ~5%.
- Year‑to‑date gain (2025): ~23%.
- Five‑year gain: >170%.
- Current P/E ratio: ~52.
Key numbers to watch
- Share price reaction: -1% on the news.
- Potential liability: €1.4 bn.
- Investment in environmental upgrades: detailed in Roadmap+ (not quantified here).
- CO₂ efficiency: among the best for blast‑furnace steel producers.
Remember, this is perspective, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.