Dalmia Bharat Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
DALBHARAT · price
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Awaiting price reaction for this filing.
Dalmia Bharat's wholly-owned subsidiary Dalmia Cement (Bharat) Limited was entitled to incentives of Rs. 236.32 Crores (Rs. 217 Cr grant + Rs. 20 Cr VAT certificate) plus 8% interest from the West Bengal government, following favorable orders from the Calcutta High Court in 2023 and 2024. The West Bengal Legislature has now passed the 'Revocation of West Bengal Incentive Schemes Act, 2025' on April 2, 2025, which retrospectively cancels all listed incentive schemes, overriding any court orders. This Revocation Act is likely to adversely affect the company's court-directed incentive claim. Dalmia Bharat is examining legal options and plans to challenge the legal validity and retrospective applicability of the Revocation Act. The company came to know about the notification on June 5, 2025.
Negative for shareholders - a Rs. 236+ Crore incentive that Dalmia Bharat had won through court orders is now at risk due to retrospective legislation by the West Bengal government. The actual financial hit depends on the success of the company's legal challenge to the Revocation Act; near-term stock sentiment may be weak until clarity emerges.