The High court of Madras pronounced an order on 5-1-2026 and the order copy has been received today regarding directing Ministry of textiles, Government of India to pay the disputed interested ....
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The High Court of Madras has ruled in favor of Maris Spinners, directing the Ministry of Textiles, Government of India, to pay the disputed interest subsidy of Rs. 1,97,36,557 (approximately Rs. 1.97 crore) within two months. The company had availed a Rs. 10 crore term loan from Indian Overseas Bank in 2010 under the Technology Upgradation Fund Scheme (TUFS) for modernizing its cotton yarn spinning mills but was denied the 4% interest subsidy as the loan was classified as a 'Left Out Case'. The court quashed the government's rejection order, holding that the company's eligibility for the subsidy was never disputed and that the delay in uploading loan details was solely attributable to the nodal bank (Indian Overseas Bank), not the petitioner. However, the company's claim for 12% per annum delayed interest on the subsidy amount was rejected.
Positive for shareholders — the company will receive a confirmed cash inflow of approximately Rs. 1.97 crore from the government within two months, strengthening its working capital position. While the delayed interest claim was dismissed, the principal subsidy recovery is a favorable outcome from a six-year legal battle.