Crompton greaves Consumer Electricals Limited has received a court order from the XXXV Metropolitan Magistrate Court in Chennai regarding a case filed under Section 138 of the Negotiable Instruments Act. The court has acquitted all accused parties in the matter, as disclosed by the company to stock exchanges on April 10, 2026.

Court Order Details

The Chennai Metropolitan Magistrate Court found that all accused parties were not guilty under Section 138 of the Negotiable Instruments Act and consequently acquitted them. The order was passed on April 8, 2026, and received by the company on April 9, 2026, at 15:00 pm.

Case Background

Crompton Greaves Consumer Electricals had initiated legal proceedings against Variety Agency and two of its partners under Section 138 of the Negotiable Instruments Act. The case pertained to a bounced cheque bearing number 407640, dated January 29, 2025, for an amount of ₹6,54,276.

Financial and Operational Impact

The court's decision to acquit the accused parties has resulted in a financial loss of ₹6,54,276 for Crompton Greaves Consumer Electricals. However, the company has clarified that this amount does not constitute a material impact on its overall financials, operations, or other business activities.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The company informed both BSE and NSE about this development, with reference to SEBI Master Circular dated January 30, 2026. Company Secretary and Compliance Officer Rashmi Khandelwal signed the disclosure document on behalf of the company.

Crompton greaves Consumer Electricals Limited has disclosed receiving an unfavorable order from the Commissioner of Income Tax (Appeals) that confirms a substantial tax demand of ₹68,66,59,820 for Assessment Year 2022-23. The company received this order on April 1, 2026, at 6:32 PM from the National Faceless Appeals Centre, Delhi.

Background of Tax Assessment

The current development follows an assessment order originally passed by the Assessment Unit of the Income Tax Department on March 20, 2024. The company had previously informed stock exchanges about this assessment order through intimations filed on March 21, 2024, and March 23, 2024. Following the initial assessment, Crompton Greaves had filed an appeal with the Commissioner of Income Tax (Appeals) challenging the order.

Details of Tax Demand

The confirmed tax demand comprises multiple components totaling ₹68,66,59,820. The breakdown of this demand includes:

Nature of Disallowances

The tax demand stems from specific disallowances made by the Income Tax Department. The primary areas of contention include:

• Disallowance of provision for warranty and after sales services
• Depreciation claimed on intangible assets
• Employee Stock Option Plan (ESOP) expenses

These disallowances form the basis of the tax demand that has now been confirmed by the appellate authority under Section 250 of the Income Tax Act, 1961.

Company's Response and Next Steps

Despite the unfavorable order from the Commissioner of Income Tax (Appeals), Crompton Greaves Consumer Electricals maintains confidence in its position. The company has indicated its intention to file a further appeal against this order based on the merits of the matter, prevailing law, and advice from tax consultants.

The company has stated that it reasonably expects a favorable order from higher appellate authorities. This suggests that the management believes the disallowances made by the tax authorities are not justified and can be successfully challenged at the next level of appeal.

Financial Impact Assessment

According to the company's disclosure, there is no material impact expected on the financials, operations, or other activities of the company despite the substantial tax demand. This assessment indicates that the company has adequate resources to handle the potential liability and continues to operate normally while pursuing legal remedies.

The disclosure was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring transparency with stakeholders regarding this significant development. Company Secretary and Compliance Officer Rashmi Khandelwal signed the disclosure on April 2, 2026.