Ramco Industries Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
RAMCOIND · price
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Ramco Industries had challenged the West Bengal Entry Tax Act, 2012, and had initially won at the Single Judge (2013) and West Bengal Taxation Tribunal (2022) levels. However, the Hon'ble High Court ruled in favour of the Government on 30 January 2025, reversing the earlier favourable orders. The disputed entry tax for June 2013 to June 2017 amounts to Rs. 295.37 Lakhs, with interest liability of Rs. 729.23 Lakhs as on 30 June 2025. The Company has filed an appeal with the Supreme Court on 29 April 2025. In the meantime, it has opted for the West Bengal Government's Settlement of Dispute (SOD) Scheme, paying 75% of the entry tax (Rs. 2.21 Crores) on 29 August 2025, which provides a waiver of the remaining 25% (Rs. 74 Lakhs) along with interest and penalty relief.
Negative near-term cash outflow of Rs. 2.21 Crores, but the settlement saves the company from a much larger liability including Rs. 729 Lakhs in interest and any penalty. The Supreme Court appeal remains open and could provide further relief, but investors should note the unfavourable High Court ruling as a material adverse development.