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In a significant legal development for India’s biofuel sector, Kotyark Industries Ltd has received permission from the Rajasthan High Court to continue operations at its biodiesel manufacturing unit in Sirohi district. The interim relief comes amid an ongoing regulatory probe triggered by a surprise inspection conducted by the state’s Agriculture Minister. The court’s decision ensures business continuity for Kotyark while the investigation proceeds, offering a measure of stability to stakeholders and the broader renewable energy ecosystem.
Key Highlights
Rajasthan High Court grants Kotyark Industries interim relief to continue operations at its Sirohi unit
The decision follows a surprise inspection by Agriculture Minister Kirodi Lal Meena on July 2, 2025
Preliminary observations raised concerns over tax compliance and operational standards
Kotyark has denied all allegations and reaffirmed adherence to regulatory norms
The company remains fully operational and continues to cooperate with authorities
Background: Ministerial Inspection Sparks Scrutiny
The controversy began when Rajasthan Agriculture Minister Kirodi Lal Meena conducted an unannounced inspection of Kotyark’s biodiesel facility located at F-86 to F-90, RIICO Industrial Area, Swaroopgunj, Sirohi. The visit reportedly raised questions about the company’s tax practices and compliance with operational standards.
Officials accompanying the minister made preliminary observations regarding documentation and production protocols
Speculative reports on social media suggested possible irregularities, prompting investor concern
Kotyark issued a formal statement denying any wrongdoing and emphasized its full compliance with applicable laws
The company clarified that no formal notice or directive had been issued by any regulatory body following the inspection.
Legal Relief and Operational Continuity
On August 7, 2025, the Rajasthan High Court granted Kotyark Industries permission to continue operations at its Sirohi unit while the investigation remains underway. The court’s interim order provides a crucial buffer against potential disruption and affirms the company’s right to operate pending further review.
The court acknowledged Kotyark’s proactive cooperation with authorities and its clean regulatory track record
The decision ensures uninterrupted production and supply of biodiesel, a critical component of India’s renewable energy strategy
Kotyark’s legal team is expected to submit additional documentation in the coming weeks to support its compliance claims
This relief is seen as a stabilizing move for the company, which has been a key supplier to oil marketing companies and industrial clients across India.
Business Impact and Market Response
Despite the regulatory scrutiny, Kotyark Industries has maintained its operational momentum:
The company’s Rajasthan unit continues to fulfill existing biodiesel supply contracts
No production delays or cancellations have been reported since the inspection
Investor sentiment remains cautiously optimistic, with shares trading flat amid legal developments
Kotyark’s ability to sustain operations during a regulatory probe reflects its robust internal governance and risk management framework.
Strategic Importance of the Rajasthan Unit
The Sirohi facility is one of Kotyark’s flagship manufacturing units, contributing significantly to its annual biodiesel output. The plant plays a vital role in:
Supporting India’s National Bio-Energy Mission
Reducing dependence on fossil fuels through clean energy alternatives
Creating employment and industrial growth in Rajasthan’s semi-urban belt
The unit’s uninterrupted functioning is essential not only for Kotyark’s business continuity but also for regional energy security and environmental goals.
Conclusion
The Rajasthan High Court’s decision to allow Kotyark Industries to continue operations at its Sirohi unit marks a pivotal moment in the company’s regulatory journey. As investigations unfold, Kotyark’s commitment to transparency and compliance will be closely watched. For now, the interim relief ensures that India’s biofuel supply chain remains intact and that one of its leading players can operate without disruption.
Sources: StockInsights, BioEnergy Times Report
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