Key Details of the Demand

  • Issuing Authority: Estate Management Division of V.O. Chidambaranar Port Authority (Ministry of Ports, Shipping & Waterways, Govt. of India), Tuticorin District
  • Reference Number: E(C) 86/1/2014-EST/D.2061
  • Date of Letter: June 11, 2026
  • Date of Receipt by Company: June 16, 2026
  • Total Demand Amount: ₹6,31,97,130 (₹6.32 crore)
  • Interest component: ₹5,35,56,890
  • GST on interest: ₹96,40,240
  • Additional Lease Rent Determined: ₹3,64,01,370 (inclusive of GST) for period from 2014 onwards up to April 30, 2026

Background and Legal Context

  • The company had filed Writ Petition No. 20431 of 2014 before the Hon'ble Madras High Court challenging revision in lease rent payable for periods from 2007 to 2014 and from 2014 onwards.
  • The Hon'ble High Court passed an Order dated November 6, 2025 directing:
  • Payment of lease rent for 2007-2014 period: ₹49,67,725 plus applicable GST
  • Payment to be made in 24 equated monthly instalments
  • Lease rent for 2014 onwards to be determined by Port Authority and communicated to company
  • The court order specifically did not contain any direction, liberty, or reservation permitting the Port Authority to levy or recover interest.

Company's Position and Response

  • The company views the demand for interest and GST thereon as "wholly unauthorised, untenable and directly contrary to the express terms" of the High Court order.
  • The company proposes to contest the demand by submitting an appropriate reply/representation to the Port Authority.
  • The company reserves all its rights and remedies available in law.

Financial Implications

  • The disputed amount totals ₹6,31,97,130 (₹6.32 crore).
  • The company has not provided for this amount as it considers the demand unauthorized and unsustainable.
  • No immediate financial impact acknowledged; contingent liability status.

Reason for Delay in Disclosure

The delay in disclosure (from June 16 receipt to June 18 filing) was attributed to time required for detailed review and internal legal assessment to ascertain correctness and implications of the demand.