Rathi Steel & Power Limited has received a significant GST demand order from tax authorities in Ghaziabad, Uttar Pradesh. The company disclosed this development under regulatory compliance requirements on March 31, 2026.

GST Demand Details

The Office of Deputy Commissioner, State Tax, SGST, Sector-11, Ghaziabad issued the demand order on March 30, 2026, under Section 74 of the CGST/SGST Act, 2017. The order was received by the company at 1900 Hours (IST) on the same date.

Nature of Alleged Violations

The tax authorities have raised the demand based on several alleged contraventions:

• Availment of ineligible or wrongful Input Tax Credit
• Non-payment of Reverse Charge Mechanism (RCM)
• Related penalty impositions

These allegations form the basis for the substantial demand raised against the company.

Company's Response and Impact Assessment

Rathi Steel and Power Limited has taken a strong stance against the demand order. The company has stated that it strongly refutes the allegations and believes the demand is not maintainable. Management has indicated plans to explore appropriate legal remedies to contest the order as necessary.

Regarding financial impact, the company has assessed that no material impact on financial, operational, or other activities can be foreseen at this stage. This suggests the company views the demand as contestable rather than a definitive liability.

Regulatory Compliance

The disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, specifically under para 20 of Para A of Part A of Schedule III. The company also referenced compliance with SEBI Master Circular ref. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

The disclosure was signed by Abhishek Verma, Whole Time Director (DIN: 08104325), ensuring proper authorization and compliance with regulatory requirements.

Rathi Steel & Power Limited has secured a major legal victory after a Special Judge declined to take cognizance of a complaint filed by the Directorate of Enforcement (ED) against the company and its officials. The court order, received on March 06, 2026, provides significant relief in a case related to coal block allocation matters.

Court Decision Details

The Special Judge (PC Act) (CBI) (Coal Block Cases)-01 at Rouse Avenue District Court, New Delhi, has declined to proceed with the ED complaint that alleged money laundering offences. This decision affects multiple individuals associated with the company who were named in the original complaint.

Individuals Involved

The ED complaint had named several key officials of the company in connection with the alleged offences:

• Mr. Udit Rathi: Promoter and former CEO
• Mr. Pradeep Rathi: Member of Promoter Group and former Managing Director
• Mr. Kushal Kumar Agarwal: AVP and former Assistant General Manager

Background and Previous Developments

The company had previously informed the stock exchange about receiving summons in this matter through intimations dated November 26, 2024 and June 2, 2025. The case originated from coal block allocation issues and subsequent directions from the Hon'ble Supreme Court.

Business Impact Assessment

Rathi Steel and Power Limited has clarified that the favorable court order will not impact its operations. The company stated that it does not foresee any adverse effect on its financial operations and day-to-day business activities following this legal development.

Regulatory Compliance

The disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, specifically under sub para 20 of Para A of Part A of Schedule III. The announcement was signed by Abhishek Verma, Whole Time Director (DIN: 08104325), ensuring proper corporate governance protocols were followed in communicating this significant development to stakeholders.