Orchid Pharma has disclosed an order received from the Additional Commissioner of Central Tax, Chennai-Outer, confirming the demand and recovery of an erroneously refunded amount of ₹1,67,07,937 plus applicable interest. The company believes the demand is unjustified and plans to file an appeal. The issue pertains to a period before the company’s acquisition via an approved Resolution Plan, and management expects no material impact on financials.
GST Department Issues Order on Erroneous Refund
Orchid Pharma Limited has received an order from the Additional Commissioner of Central Tax, Chennai-Outer Commissionerate. This order confirms the demand and recovery of an amount of ₹1,67,07,937, which was erroneously refunded, along with applicable interest. The demand is based on Section 11AB of the Central Excise Act, 1944, and the company has been directed to recover the sum under Section 11A of the Central Excise Act, 1944.
Company’s Stance and Future Actions
Based on a preliminary assessment, Orchid Pharma believes the order, including the demand and interest, is unjustified and not sustainable in law or facts. Consequently, the company intends to pursue appropriate legal remedies by filing an appeal before the competent appellate authority. This proactive step indicates the company’s commitment to challenging the order.
Impact of Pre-Acquisition Liabilities
The company highlighted that the subject matter of the order pertains to a period prior to the commencement of its Corporate Insolvency Resolution Process (CIRP). Subsequently, Orchid Pharma was acquired through an approved Resolution Plan sanctioned by the Hon’ble National Company Law Tribunal. Management is of the view that any liabilities related to the period before the acquisition have been appropriately addressed within the framework of the Resolution Plan and applicable law.
Assessment of Financial Impact
Orchid Pharma understands and believes that this order will not have a material impact on the company’s financials, operations, or other activities. This assessment is based on the fact that the liabilities are related to a pre-acquisition period and are considered adequately managed under the Resolution Plan.
Disclosure Compliance
This disclosure is made in accordance with Regulation 30 read with Part A of Schedule III of the Securities Exchange Board of India (Listing Obligations and Disclosure requirements) Regulations, 2015, and SEBI Master Circular SEBI/HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The detailed particulars as per SEBI Listing Regulations are provided in Annexure-A to this announcement, received on June 09, 2026.
Source: BSE
