Stories
NCLT Approves Tata Steel Merger with Subsidiary; Company Wins Major Tax Rulings
C
CNBC TV18•01-10-2026, 21:40
NCLT Approves Tata Steel Merger with Subsidiary; Company Wins Major Tax Rulings
- •The National Company Law Tribunal (NCLT), Mumbai Bench, approved the Scheme of Amalgamation between Tata Steel and its wholly owned subsidiary Rujuvalika Investments Ltd on October 1, 2026.
- •The merger was sanctioned under Sections 230 to 232 of the Companies Act, 2013, following an earlier announcement on July 31, 2024.
- •Tata Steel received a favorable order from the Income Tax Appellate Tribunal (ITAT) allowing deduction of interest expenditure, reducing its tax exposure by approximately ’427 crore (from ’1,901 crore to ’1,474 crore).
- •A separate favorable order dated February 20, 2026, for FY2008, further reduced the company's tax exposure for that year by ’215 crore, bringing it from ’1,901 crore to ’1,686 crore.
Key Questions Answered
The National Company Law Tribunal, Mumbai Bench, approved and sanctioned the Scheme of Amalgamation between Tata Steel and its wholly owned subsidiary Rujuvalika Investments Ltd.
The ITAT order will reduce Tata Steel's tax exposure by around ₹427 crore, lowering it from ₹1,901 crore to ₹1,474 crore.
Tata Steel initially announced the proposed amalgamation in a disclosure dated July 31, 2024.
