IRCON International Limited has announced the outcome of a significant VAT dispute concerning its Ganga Bridge Project assessments spanning the years 2010-11 to 2016-17. The Hon’ble High Court of Patna, in its judgment dated February 25, 2026, dismissed the company’s petition, upholding the original demands. This decision confirms a total liability of Rs. 108.75 crore, against which IRCON has already deposited Rs. 27.39 crore, leaving a net outstanding balance of Rs. 81.36 crore plus interest.
Update on Pending Litigation
IRCON International Limited has provided an update regarding the ongoing litigation pertaining to Value Added Tax (VAT) assessments for the Ganga Bridge Project covering the fiscal years 2010-11 to 2016-17. This matter had previously been reflected as a contingent liability amounting to Rs. 108.75 crore.
High Court Judgement Details
The company had previously challenged the VAT assessment orders via a writ petition in the Patna High Court and had secured a stay on recovery proceedings. Following hearings that concluded in early December 2025, the court delivered its judgement on February 25, 2026. The judgement ultimately dismissed IRCON’s petition, thereby upholding the demands made by the assessing authority.
Financial Implications and Next Steps
The total demand stands confirmed at Rs. 108.75 crore. IRCON has already remitted Rs. 27.39 crore towards this liability. Consequently, the net outstanding amount, exclusive of interest yet to be calculated by the VAT department, is Rs. 81.36 crore.
The Company Secretary & Compliance Officer confirmed that IRCON is currently engaged in a detailed review of the final judgement. Appropriate further actions, including the possibility of filing an appeal to a higher court, are currently under consideration.
Personnel and Settlement Details
There are no applicable details regarding changes in the status of litigation against key management personnel. Furthermore, as the matter has not reached a settlement, there are no applicable details concerning settlement terms, penalties paid, or the resulting financial impact on the listed entity.
Source: BSE
