Tata Steel hit by €1.4 billion class action lawsuit in the Netherlands for environmental damages

The proceedings pertain to allegations by SFW, holding Tata Steel Netherlands liable for alleged damages caused by its operations, most importantly, emissions of hazardous and/or harmful substances in Velsen-Noord.
Tata Steel’s Friday filing confirms that SFW seeks approximately euro 1.4 billion in compensation on account of increased susceptibility to various health issues and the loss of enjoyment of homes.
Tata Steel’s Friday filing confirms that SFW seeks approximately euro 1.4 billion in compensation on account of increased susceptibility to various health issues and the loss of enjoyment of homes.File photo
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NEW DELHI: Dutch nonprofit organisation Stitching Frisse Wind.nu (SFW) has sent a legal notice to Tata Steel’s local units seeking Euro 1.4 billion (about Rs 14,800 crore) compensation for alleged environmental harm and health damages caused to people in the Netherlands due to hazardous emissions. Tata Steel in a regulatory filing to the exchanges informed that on December 19, 2025, SFW served a writ of summons on two subsidiaries of Tata Steel Limited -- Tata Steel Nederland B.V. and Tata Steel IJmuiden B.V. (collectively referred to as TSN).  

The proceedings initiated by SFW involves a collective action under the Dutch Act on Collective Settlement of Mass Claims (WAMCA). In this action, SFW states that it is acting on behalf of residents living in the vicinity of TSN. The litigation has been filed in the District Court North Holland (Haarlem).

The proceedings pertain to allegations by SFW, holding TSN liable for alleged damages caused by TSN’s operations in Velsen-Noord (including, most importantly, emissions of hazardous and/or harmful substances).  Tata Steel’s subsidiary TSN said that it is fully prepared to defend against the claim.

“In our assessment, SFW faces considerable challenges regarding both admissibility and the merits of its case. Although, TSN is yet to receive the exhibits on which SFW intends to rely, TSN has already identified substantial grounds for defence,” said Tata Steel.

As per the Tata Steel’s filing, SFW seeks approximately euro 1.4 billion in compensation on account of increased susceptibility to various health issues and the loss of enjoyment of homes, as the average home value in the region demonstrably lags behind that of comparable regions. According to TSN, SFW has provided no supporting evidence for the claim, making it unsubstantiated and speculative.

The proceedings under the WAMCA regime are conducted in two phases:  (a) admissibility, and (b) merits. Each of these phases will take approximately 2 to 3 years to conclude.  “As the proceedings are initiated under the WAMCA regime, the debate on the quantum of claims is not expected in the upcoming years.  TSN considers that it has strong arguments to defend against the claims and will vehemently defend itself against these claims,” said Tata Steel.

Tata Steel’s Netherlands operations have received allegations related to damaging the environment in the past as well.  It received two penalty orders in December 2024 from the Environment Agency of the Netherlands which fined it Rs 239 crore for non-compliance with emission thresholds.

Tata Steel stated that health and a clean-living environment remain key priorities for TSN, as they do for local residents and stakeholders. “Alongside decarbonization initiatives intended to promote a healthier living environment, TSN is dedicated to minimizing its contributions to coarse and fine particulate matter (PM10) emissions, as well as reducing annual releases of substances of very high concern, NOx, SO₂, odours, and noise,” it added. 

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