Emmvee Photovoltaic Power received a favorable order from the Karnataka High Court at Bengaluru directing the trial court to dispose of a pending criminal litigation within nine months.

The litigation originated from a dismissal order passed by the Small Causes Court, Bengaluru. The company had previously disclosed this matter in its prospectus filed on November 14, 2025. The High Court's directive aims to expedite the resolution of the legal dispute.

Litigation background

The company sought to set aside the dismissal order issued by the lower court. The criminal litigation was filed before the Hon'ble High Court of Karnataka at Bengaluru. This update was communicated to stock exchanges on October 1, 2026.

The intimation regarding this development is available on the company's investor relations website. The company remains committed to complying with regulatory disclosure norms.

Emmvee Photovoltaic Power reported that its material subsidiary, Emmvee Energy Private Limited, received a show cause notice from the Karnataka State GST Department on September 30, 2026. The notice alleges excess availment of Input Tax Credit for the financial year 2022-23.

The department has proposed a total demand of ₹38.44 crore. This amount comprises a tax demand of ₹20.39 crore, along with applicable interest and penalty. The company stated that the allegations are not sustainable and expects no material financial impact.

Breakdown of the Proposed Demand

The Karnataka State GST Department detailed the components of the proposed recovery in its notice. The table below outlines the specific financial implications disclosed by the company:

Company's Stance and Response

Emmvee Energy Private Limited maintains that it availed only the eligible Input Tax Credit of ₹11.51 crore as per applicable GST provisions. Consequently, the company asserts that the additional tax demand, interest, and penalty are not payable.

The subsidiary is in the process of filing an appropriate response before the concerned authority within the prescribed timeline. It also intends to pursue other legal remedies if necessary. Based on a preliminary assessment, the company does not anticipate any material adverse effect on its financial position or operations from this notice.

What the Numbers Show

A comparison of the figures reveals a significant divergence between the company's claimed eligible credit and the department's proposed tax demand. Emmvee claims an eligible Input Tax Credit of ₹11.51 crore, whereas the department proposes a tax recovery of ₹20.39 crore. This suggests the authority believes the company claimed nearly double the amount it deems eligible. Furthermore, the interest component of ₹16.01 crore is substantial relative to the base tax demand, indicating a prolonged period of non-payment or dispute as calculated by the department.