Dalmia Bharat Sugar and Industries Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
DALMIASUG · price
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Awaiting price reaction for this filing.
The Uttar Pradesh Excise Commissioner has raised a demand of Rs. 21.10 crore on Dalmia Bharat Sugar as retrospective 'export pass fees' on its ethanol (Denatured Power Alcohol) supplies, covering FY 2018-19 to FY 2025-26. This follows a Supreme Court order from October 2024 that upheld the State's authority to regulate import and export of denatured spirits. The company has challenged the demand through the UP Sugar Mills Association at the Lucknow Bench of the Allahabad High Court and expects it to be quashed. The company has stated there is no material financial, operational, or other impact, except for the demand amount itself.
A Rs. 21.10 crore liability is modest for a company of this size, but pending resolution, the disputed amount represents a contingent outflow. Since the company is actively contesting the demand and is optimistic about quashing it, the long-term impact may be limited, though the stock could see short-term sensitivity to legal updates.