Tata Steel faces €1.4 billion class action in Netherlands

Two of Tata Steel’s Dutch subsidiaries are facing a class action lawsuit in the Netherlands, seeking compensation of about €1.4 billion (₹14,810 crore) for alleged environmental and health-related damage.

- Dipali Banka

Dutch nonprofit organization Stichting Frisse Wind.nu (SFW) initiated the legal proceedings against Tata Steel Nederland B.V. and Tata Steel IJmuiden B.V, Tata Steel said in a filing with the stock exchanges late Thursday.

SFW claims to represent residents living near Tata Steel's IJmuiden plant in Velsen-Noord. It alleges that emissions from the steel maker's operations, including hazardous and harmful substances, have negatively impacted public health and the quality of life in the surrounding areas.

SFW is seeking compensation for “increased susceptibility to health issues among residents, as well as loss in the enjoyment and value of homes in the region.” It contends that average home prices in the area lag behind those in comparable regions and attributes this to the steel plant’s operations.

In response, Tata Steel said SFW's claims lack merit and that its Dutch subsidiary “has strong arguments to defend against the claims and will vehemently defend itself against these claims.” The company added that SFW has not provided any supporting evidence and described the compensation demand as speculative and without basis.