Solarworld Energy Solutions Limited received a favorable outcome from the Dispute Adjudication Board (DAB) regarding contractual disputes with SJVN Green Energy Limited for two major solar projects in Gujarat.

The Sole Adjudicator passed final reasoned determinations for the 100 MW GUVNL Phase XIII and 260 MW GUVNL Phase XIV Solar PV Projects on September 18, 2026.

Award Details

The company invoked the DAB mechanism under Clause 3.68 of the Conditions of Contract to resolve claims arising from its EPC contracts with SJVN Green Energy Limited, a wholly owned subsidiary of SJVN Limited.

The adjudicator, Er. Harish Kumar Sharma, former Executive Director of SJVN Limited and Impaneled Independent Engineer at the Ministry of Power, issued separate awards for both projects.

Financial Implications

The total awarded value across both projects stands at ₹40.27 crore. This figure comprises a combination of liquid cash outlays and retention monies released against Bank Guarantee or Insurance Surety Bond substitutions.

For the 100 MW project, the company had claimed ₹56.51 crore across twelve heads, including retention monies, overdue supply invoices, delay financing interest, site preservation costs, module insurance, and loss of profit. The DAB admitted ₹13.77 crore.

In the larger 260 MW project, the company claimed ₹162.83 crore across eight heads, covering retention monies, financing interest on DC cables, site operating costs, asset preservation, and loss of profit. The adjudicator awarded ₹26.50 crore.

What the Numbers Show

The financial structure of the awards reveals a significant reliance on non-cash settlements. Of the total ₹40.27 crore awarded, approximately ₹32.39 crore (or 80%) is designated as retention release against security instruments rather than immediate liquid cash. Only ₹7.87 crore represents direct cash outlays. This indicates that while the contractual disputes are resolved in favor of Solarworld, the immediate liquidity impact is limited compared to the total admitted claim value.

Regulatory Disclosure

The company made this disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Clause 8 of Para B of Part A of Schedule III. The information was filed with BSE Limited and the National Stock Exchange of India Limited following the receipt of the physical communication at the corporate office on September 18, 2026, at 3:24 pm.

Solarworld Energy Solutions disclosed that its wholly owned subsidiary, Znshine Solarworld Private Limited, received a show cause notice from GST authorities in Uttarakhand. The notice proposes a penalty of ₹1,22,12,498 following the interception of a consignment vehicle on September 16, 2026.

The company stated the matter is at the preliminary stage and does not represent a confirmed liability. A personal hearing is scheduled for September 24, 2026.

Regulatory Action Details

The Office of the Assistant Commissioner, State Tax, Mobile Squad, Roorkee, issued the notice under Section 129 of the Central Goods and Services Tax Act, 2017, read with Section 20 of the Integrated Goods and Services Tax Act, 2017. The proposed penalty amount represents 200% of the tax payable under Section 129(1)(a).

The authorities alleged prima facie non-compliance with Section 68 and Section 31 of the CGST Act, 2017, along with Rules 138, 138A, 46, and 55 of the CGST Rules, 2017.

Alleged Violations

The notice cites three primary discrepancies regarding the intercepted consignment:

• Vehicle mismatch between the intercepted vehicle and details in the E-Way Bill
• Failure to follow multi-vehicle procedure for moving goods from a single E-Way Bill across separate vehicles
• Discrepancy between the dispatch location declared in the E-Way Bill and Customs documents

Company Response

Znshine Solarworld submitted a detailed written reply on September 18, 2026. The subsidiary argued that vehicle particulars were duly updated prior to interception and provided supporting documents including Customs records, Container Freight Station logs, transporter data, and E-Way Bill records.

The company relied on CBIC Circular No. 64/38/2018-GST and applicable judicial precedents to substantiate its position. It requested the dropping of penalty proceedings and the release of detained goods and conveyance.

Financial Impact Assessment

Solarworld Energy Solutions stated that the proposed penalty is not a crystallised liability as the matter remains contested. Based on currently available facts, the company expects no material impact on its financial or operational activities.