Tata Steel's Netherlands subsidiaries are facing a large collective lawsuit over alleged pollution-related health and property damage near its steel plant at Velsen-Noord, even as the company says the claims are speculative and that it remains committed to improving the local environment.
The announcement came just days after the Competition Commission of India approved Tata Steel's bid to gain total control of Tata BlueScope Steel Pvt Ltd by acquiring the remaining 50 per cent stake from BlueScope Steel Asia Holdings.
What the lawsuit alleges
Residents' foundation Stichting Frisse Wind (SFW) has filed a collective action in the District Court of North Holland against two Tata Steel subsidiaries, Tata Steel Nederland B.V. and Tata Steel IJmuiden B.V., which operate the steelworks at Velsen-Noord near IJmuiden.
SFW says emissions of hazardous and harmful substances from the plant have increased health risks for people living in the surrounding IJmond region and reduced their quality of life due to dust, noise and odour.
The foundation is seeking about 1.4 billion euros (around Rs 13,000–Rs 14,000 crore) in compensation on behalf of hundreds of thousands of residents, arguing that average house prices in the region lag behind comparable areas because of the plant’s pollution.
The case has been brought under the Dutch Act on Collective Settlement of Mass Claims (WAMCA), and legal experts expect the admissibility and merits phases together to take several years.
Who is funding the lawsuit?
Tata Steel, in its statement, noted, "According to SFW, the class action is financed by Redbreast Associates N.V. and Omni Bridgeway S.A, both of which are third-party funders." SFW has also published a Dutch Claim Code 2019 compliance statement describing how the funders may receive either a multiple of their investment or a percentage of any recovered amount, capped at 25 per cent.
Under the WAMCA regime, the court will first decide whether the claim is admissible and which foundation, if there are multiple, can act on behalf of the group, before moving to the detailed merits and any discussion of compensation, Tata Steel clarified further.
Tata Steel stated: "As the proceedings are initiated under the WAMCA regime, the debate on the quantum of claims is not expected in the upcoming years."
Tata Steel’s response
Tata Steel’s Netherlands units (collectively, TSN) stressed that they have not yet received all the detailed "exhibits" SFW plans to rely on, but claims to have already identified "substantial grounds for defence".
The companies said SFW’s estimate of 1.4 billion euros was unsupported, calling the claim "unsubstantiated and speculative" and adding that it "rejects their claims being without any basis".
TSN highlighted that health and a clean living environment are key priorities for the company, just as they are for local residents and other stakeholders.
The Tata Steel units even referred to their “Roadmap+” and “Green Steel Plan”, developed with the Dutch government, under which they said they invested in reducing dust, noise and odour, cutting emissions of lead, other metals and PAHs, and moving towards lower‑carbon steel production.
The companies added that they were among the more CO₂‑efficient blast‑furnace steelmakers globally and that they would continue to work with authorities and the community to further reduce particulate matter, nitrogen oxides, sulphur dioxide and other harmful substances.
TSN has stated it will "vehemently defend" itself in court while continuing discussions with the Dutch government on long‑term transformation of the site and environmental improvements in the IJmond region.