IRCON International has received significant relief from the Supreme Court of India in a major tax dispute case. The apex court, through its order dated 16th March, 2026, has temporarily stayed a substantial VAT demand while reviewing the Patna High Court's decision related to the company's Ganga Bridge project.

Supreme Court Order Details

The Supreme Court has issued a notice to the VAT department and directed that pending disposal of the Special Leave Petitions filed by IRCON International, the operation of the common judgment dated 25th February, 2026 of the Patna High Court shall remain stayed. This stay covers the VAT demand for all six years in dispute, spanning from FY 2010-11 to FY 2016-17 (excluding FY 2011-12).

Background of the Case

The dispute originated from a common judgment dated 25th February, 2026 passed by the Patna High Court, which upheld the VAT demands raised on the company. Following this judgment, demand notices were issued by the State Tax authorities for three specific cases - CWJNC No. 11625 of 2019, CWJNC No. 3600 of 2020, and CWJNC No. 1716 of 2023, related to FY 2013-14, 2014-15, and 2016-17 respectively.

Regulatory Compliance

IRCON International has made this disclosure under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The company filed the disclosure on 17th March, 2026, in continuation to its previous letters dated 14th August, 2023 and 26th February, 2026, ensuring full transparency with stakeholders regarding this significant legal development.

Financial Impact

This Supreme Court relief represents a positive development for IRCON International, as it temporarily removes the immediate financial burden of the ₹78.64 crore VAT demand. The stay order allows the company to continue its operations without the immediate pressure of settling this substantial tax liability while the legal proceedings continue at the highest judicial level.

IRCON International has issued a formal clarification to stock exchanges categorically denying any merger discussions with Rail Vikas Nigam Limited (RVNL), following media reports and regulatory queries about a proposed merger between the two railway infrastructure companies.

Official Stock Exchange Communication

The company submitted its response to both BSE Limited and National Stock Exchange of India Limited on March 6, 2026, addressing queries about news reports suggesting the Ministry of Railways had proposed a merger between IRCON and RVNL. The clarification was filed under Regulation 30 of the SEBI (LODR) Regulations, 2015.

Regulatory Response Details

IRCON's Company Secretary and Compliance Officer Pratibha Aggarwal signed the official response, stating that the news item regarding merger discussions "is not based on the information/details available with the Company." The company emphasized it is not engaged in any such discussions or negotiations.

Company's Position on Market Impact

The railway infrastructure company reiterated its commitment to promptly inform stock exchanges of any event or information that may materially impact its securities' price. IRCON stated there is currently no information or announcement related to its operations that may influence price behavior in the scrip.

Background Context

As a Government Company under Section 2(45) of the Companies Act, 2013, IRCON International operates as a Navratna company under the Government of India. The clarification addresses market speculation that had emerged following media reports about a potential merger proposal from the Ministry of Railways.

Market Transparency Measures

The formal denial provides clarity to investors and market participants regarding the company's current corporate development status. This official communication ensures shareholders can make informed investment decisions based on verified information rather than market speculation or unconfirmed media reports.