Ircon International Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
IRCON · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
The Patna High Court has dismissed IRCON's writ petition challenging VAT assessments for the Ganga Bridge Project for the years 2010-11 to 2016-17. The total VAT demand of Rs. 108.75 crore has been upheld by the court. IRCON has already deposited Rs. 27.39 crore, leaving a net outstanding of Rs. 81.36 crore (excluding interest that will be calculated by the VAT department). The demand was already reflected in IRCON's books as a contingent liability. The company is reviewing the detailed order and plans to pursue further legal action, including an appeal to a higher court.
Negative near-term sentiment as the court ruling validates a significant tax demand, though it was already provisioned as a contingent liability. Shareholders should watch for the appeal outcome and any additional interest liability, which could materially affect financials if the higher court also rules against IRCON.