Tata Chemicals shares are in focus after the company informed exchanges that the Hon’ble High Court of Gujarat has passed an order related to legacy wastewater channels at Mithapur, Gujarat.
According to the company’s filing, the court rejected Tata Chemicals’ claim of pre-existing rights over land utilised for legacy open channels that discharged wastewater into the sea. The court has also directed the Gujarat Pollution Control Board (GPCB) to appoint experts to assess the environmental impact caused to the area and determine appropriate remediation and compensation within three months.
The company clarified that the legacy open channels are no longer operational and not in use. Tata Chemicals stated that it currently operates through a “state-of-the-art closed deep-sea wastewater discharge pipeline” and remains fully compliant with all regulatory requirements.
The court order pertains to a writ petition filed by the company challenging an earlier Collector’s order dated April 10, 2006, which had rejected Tata Chemicals’ pre-existing rights over the land linked to the wastewater channels.
In its disclosure, Tata Chemicals said the financial impact of the matter is currently unquantified and will depend on the outcome of the assessment to be conducted by experts appointed by the GPCB. However, the company added that there is no operational impact from the order.
The company also said it is examining the High Court order and evaluating its future course of action while continuing to work with authorities and agencies to uphold environmental standards in the region.
Meanwhile, shares of the company were trading 1.9% higher at Rs 781 but off its intraday high of Rs 819 hit earlier in the day on the NSE.
Disclaimer: This article is based on exchange filings and is intended for informational purposes only.