Dwarikesh Sugar Industries Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
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The UP Excise Department has directed Dwarikesh Sugar's Dwarikesh Nagar Unit to pay ₹1 per bulk litre as import/export fee on denatured spirit (power alcohol) for the period FY2018-19 to FY2024-25, following a Supreme Court order dated October 23, 2024 that upheld the State's authority to levy such fees. The total demand has been quantified at ₹9,46,82,000 (approximately ₹9.47 crore). The Excise Commissioner has reinstated a levy that was previously being discontinued based on an internal departmental interpretation. The Company has stated that there is no material financial or operational impact other than this ₹9.47 crore demand, and is evaluating legal recourse through appropriate forums to challenge the order.
Shareholders should note a potential cash outflow of up to ₹9.47 crore if the demand is upheld, though the Company has downplayed its significance. The stock may see some short-term pressure due to the retrospective demand, but the Company is likely to contest it, which could delay or reduce the final payout.