NSE/BSE Codes: NSE Symbol: AARTIDRUGS, BSE Code: 524348

Summary of Key Information:

Nature of Event / Disclosure:

Regulatory disclosure under Regulation 30 of SEBI Listing Regulations regarding the final outcome of a litigation matter between the company and the GST Department, which has been dismissed by the Supreme Court of India.

Involved Parties / Authorities:

  • Opposing Party: GST Department (specifically CGST & C.Ex. Authority)
  • Litigation Against: Aarti Drugs Limited (the Company)
  • Adjudicating Authorities: Hon'ble Supreme Court of India (final authority), Hon'ble High Court of Judicature at Bombay (previous authority)

Date / Timeline of Event:

  • Original Disclosure Date: March 16, 2026 (Ref: ADL/SE/2025-26/77)
  • Current Disclosure Date: August 10, 2026 (Ref: ADL/SE/2026-27/37)
  • Event Date (Supreme Court Order): Disclosed on August 10, 2026 (exact date of order not specified in disclosure)

Brief Description of Outcome / Dispute:

The litigation originated from an order passed by the CGST & C.Ex. Authority. This order included:

  • A demand for an "erroneous sanctioned IGST refund" of ₹20.72 Crores under Section 74(9) of the CGST Act, 2017.
  • A decision to drop a separate demand of ₹209.98 Crores under Section 74 of the CGST Act, 2017 read with Section 20 of the IGST Act 2017.
  • A demand for interest as prescribed under Section 50(1) of the CGST Act, 2017.
  • The imposition of a penalty of ₹20.72 Crores under Section 74(9) of the CGST Act, 2017 read with Section 122(2)(b) of the CGST Act, 2017.

The Company challenged the demand and penalty by filing a writ petition in the Bombay High Court. The Hon'ble High Court subsequently passed an order setting aside the CGST & C.Ex. Authority's order. The GST Department then challenged this High Court order by filing a Special Leave Petition (SLP) before the Supreme Court of India. The Hon'ble Supreme Court has now dismissed this SLP, finalizing the matter in the company's favor.

Impact of Outcome:

Financial Impact:

The company explicitly states: "There is no impact on the financial, operation or other activities of the Company." The dismissal of the SLP conclusively eliminates the potential financial liability of the ₹20.72 Crore demand and the equivalent ₹20.72 Crore penalty that was initially imposed. The interest demand is also nullified. The disclosure notes that the demand of ₹209.98 Crores had already been dropped by the original GST order.

Operational / Business / Strategic Impact:

The company confirms there is no operational impact resulting from this legal outcome.

Other Implications:

The matter is now fully resolved and disposed of by the Supreme Court, providing finality to the dispute and eliminating associated legal and regulatory uncertainty.

Next Steps / Required Actions:

No further actions, appeals, or next steps are indicated as the matter stands disposed of by the Hon'ble Supreme Court.