A demand order has been received concerning the wholly owned material subsidiary, Mahadhan AgriTech Limited. The order, related to the period July 1, 2017 to March 31, 2018, raises a total demand of ₹28,79,48,424, including tax, interest, and penalty. Mahadhan AgriTech views the demand as not tenable and intends to challenge it.
Demand Order Details
An intimation of a demand order was received by Deepak Fertilisers regarding its wholly owned subsidiary, Mahadhan AgriTech Limited (MAL), on October 31, 2025. This order arises from an assessment under CGST/SGST Rules, 2017.
Financial Implications
The demand order specifies a total amount of ₹28,79,48,424. This figure is comprised of the following components:
- Tax: ₹12,93,93,513
- Interest: ₹14,56,15,559
- Penalty: ₹1,29,39,350
The relevant period for this demand is from July 1, 2017 to March 31, 2018.
Company’s Response
Mahadhan AgriTech views the demand as not sustainable legally and is planning to challenge the order through appropriate legal channels. The company does not foresee a material impact on the financials, operations, or other activities due to this matter.
Source: BSE
