AstraZeneca Pharma India Limited has informed stakeholders about the potential receipt of a revised demand notice from Bengaluru authorities for improvement charges and applicable interest. This update follows an earlier intimation and pertains to the Greater Bengaluru Governance Act, 2024. The company expects the quantifiable monetary impact to be limited to the ascertained amount, for which a provision of INR 156.1 million has already been made.
Anticipated Demand Notice from Bengaluru Authorities
AstraZeneca Pharma India Limited has issued an update regarding a potential financial development. The company anticipates receiving a revised demand notice from the Bengaluru North City Corporation (BNCC) or its successor, the Greater Bengaluru Authority (GBA). This notice is expected to pertain to improvement charges and applicable interest, as stipulated under the Greater Bengaluru Governance Act, 2024, and the Karnataka Municipal Corporations Act, 1976.
Details of the Proceedings
This development arises subsequent to the dismissal of a Writ Appeal filed before the Hon’ble High Court of Karnataka. The anticipated demand notice from BNCC/GBA is likely to be for improvement charges and associated interest. The company is currently examining the demand and its underlying computation to determine the appropriate course of action.
Financial Implications and Provisions
The quantifiable monetary impact is expected to be limited to the amount finally levied by BNCC/GBA. The likely improvement charges are estimated not to exceed INR 70.8 million, in addition to applicable interest. AstraZeneca Pharma India has proactively made an additional provision of INR 156.1 million in its books of accounts, based on current estimates.
Action Taken
The Company will examine the demand and the underlying computation and, based on the outcome of such examination, will take appropriate action. Investors are advised that this information has been disclosed in accordance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Source: BSE
