DIC India Limited has received a GST demand order from Tamil Nadu tax authorities totaling ₹2,81,472 for alleged violations related to E-Way Bills generation. The company disclosed this development on April 03, 2026, in compliance with SEBI listing regulations.

GST Demand Details

The demand order was issued by the Superintendent of GST, Range-III Ambattur Division North Chennai under Section 74 (1) & (9) of CGST/TNGST Act, 2017. The total demand breaks down as follows:

Nature of Alleged Violations

The GST authorities have alleged duplicate generation of E-Way Bills during the financial years 2019-20 to 2021-22. The demand order was issued in Form DRC 07 with reference number ZD330326281151Q. The violations fall under the provisions of CGST/TNGST Act, 2017 and concurrent provisions of IGST Act, 2017.

Company's Response and Impact Assessment

DIC India has stated that there is no impact on its financial, operational, or other activities except as mentioned in the demand order. The company is currently conducting a detailed review of the order with consultants to analyze the allegations comprehensively.

Next Steps

The company has indicated that after completing its comprehensive analysis with consultants, it will decide on the appropriate course of action regarding this GST demand order. This disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders about regulatory communications received by the company.

DIC India Limited has filed a fresh commercial suit against Star Plastics before the District Courts, New Delhi, seeking recovery of INR 60,62,333/- including penalty and interest. This legal action stems from Star Plastics' failure to honor a settlement agreement reached earlier in 2025.

Settlement Agreement and Breach

The current litigation follows a previous disclosure made by DIC India on May 6, 2025, regarding mediation proceedings before the Delhi High Court Mediation and Conciliation Centre. The parties had successfully settled their disputes, with Star Plastics agreeing to pay a sum of INR 56,94,833/- to the company after adjustment of ad hoc payments of INR 10,00,000/-.

As a consequence of this settlement, the arbitration proceedings before the Indian Council of Arbitration (ICA) were closed. However, Star Plastics failed to fulfill its payment obligations under the agreement.

Current Legal Action

Out of the agreed settlement amount, DIC India received only INR 2,50,000/-, leaving a substantial balance unpaid. In view of this breach of obligations by Star Plastics, the company has now instituted a commercial suit for recovery before the District Courts, New Delhi.

The commercial suit seeks recovery of INR 60,62,333/-, which includes the outstanding settlement amount along with penalty and interest charges that have accrued due to the delayed payment.

Regulatory Compliance

DIC India made this disclosure in compliance with Para B of Part A of Schedule III of Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure also references SEBI circulars dated July 13, 2023, and February 25, 2025, regarding litigation disclosure requirements.

The company has informed the stock exchanges, including BSE Limited, National Stock Exchange of India Limited, and The Calcutta Stock Exchange Limited, about this fresh commercial litigation as part of its ongoing disclosure obligations.