Dalmia Bharat’s ₹2.36 Billion Incentive Order Faces Uncertainty Amid Legal Tussle

Image Source: The Economic Times

Dalmia Bharat Ltd’s prospects of receiving ₹2.36 billion (₹236.32 crore) in government incentives for one of its units have come under a cloud, following recent court developments that may affect the disbursal and timing of these funds.

Key Highlights:

The Calcutta High Court had previously directed the West Bengal Industrial Development Corporation (WBIDC) to disburse the entire incentive amount of ₹236.32 crore to Dalmia Cement (Bharat) Limited in three installments, with 8% interest, between July and September 2023. The court warned that contempt proceedings could follow in case of non-compliance.
This incentive relates to a writ petition filed by Dalmia Cement (Bharat) Limited for the grant of industrial incentives and a VAT certificate, crucial for the company’s operations and financial planning.
The latest court order indicates that the incentive payout to the unit is “likely to be affected,” raising concerns about potential delays or changes in the payment schedule.
The uncertainty comes at a time when Dalmia Bharat is navigating multiple legal and regulatory challenges, including ongoing tax disputes and penalties in other jurisdictions.

The company’s management is closely monitoring the situation and evaluating legal options to secure the timely release of the incentives, which are significant for its expansion and investment plans in the region.

Investors and stakeholders are advised to stay alert to further updates as the legal proceedings evolve and impact the company’s financial outlook.

Source: Dalmia Cement (Bharat) Limited Regulatory Filings, Calcutta High Court Orders