Date: 02.07.2026
Regulatory Disclosure Summary
Tax Recovery Proceedings
The company's sugar unit at Alathukombai Village, Sathyamangalam Taluk, Erode has received a copy of proceedings from the District Collector, Erode addressed to the Tahsildar, Sathyamangalam directing recovery of Rs. 12,72,30,170/- (Rupees Twelve Crores Seventy Two Lakhs Thirty Thousand and One Hundred and Seventy) under Section 5 of the Revenue Recovery Act, 1864. This amount represents tax and interest alleged to be payable under Tamil Nadu Tax on Consumption or Sale of Electricity Act, 2003 for the period from June 2003 to March 2016.
Legal History
The company had filed Writ Petition W.P No.7397 of 2005 challenging the levy of tax under the Tamil Nadu Consumption or Sale of Electricity Act, 2003. The Hon'ble High Court allowed this petition on 8.3.2012, subject to the outcome of other writ petitions challenging amendments to the Act. The Energy Department did not appeal this High Court order.
Subsequently, writ petitions filed by other parties challenging the amendment were dismissed. Some affected parties have filed Special Leave Petitions before the Hon'ble Supreme Court, while others have filed review petitions. These Special Leave Petitions are currently pending consideration before the Hon'ble Supreme Court.
Previous Recovery Proceedings
In 2019, the company requested the Chief Electrical Inspector to Government, Tamil Nadu and the District Collector, Erode to defer recovery proceedings until the Supreme Court finally decides the issues. The then District Collector, Erode withdrew the revenue recovery proceedings after considering the pendency of proceedings before the Hon'ble High Court and Hon'ble Supreme Court.
Current Situation
The present District Collector, Erode has now initiated fresh recovery proceedings under the Revenue Recovery Act, 1864 for recovery of Rs. 12,72,30,170/-.
Company Response
The company is currently consulting its legal counsel and evaluating appropriate legal remedies, including filing an appeal before the appropriate Government authority and/or initiating proceedings before the Hon'ble High Court and/or Hon'ble Supreme Court. The company believes it has valid legal grounds to challenge these proceedings.
Financial Implications
The potential financial implication is Rs. 12,72,30,170/- if the recovery proceedings are successful.
Compliance Details
Date of receipt of communication: 01.07.2026
Authority: District Collector, Erode District, Tamilnadu
Period applicable: June 2003 to March 2016
No aberrations/non-compliances by the authority identified
No penalty or sanction imposed