UltraTech Cement Limited has announced the successful resolution of arbitration proceedings with Jaiprakash Associates Limited (JAL), settling a ₹1,000 crore dispute that originated from the acquisition of cement plants under a scheme of arrangement. The Arbitral Tribunal passed a final award following a settlement reached between the parties.

Background of the Arrangement

The dispute stems from a Scheme of Arrangement between JAL and UltraTech Cement for the acquisition of certain cement plants from JAL. This scheme was approved by the National Company Law Tribunal at Mumbai and Allahabad. As part of the arrangement, UltraTech issued and placed in escrow specific preference shares on June 27, 2017.

Settlement and Final Resolution

The preference shares were held in escrow pending the satisfaction of conditions relating to the Dalla Super unit and mines situated in Uttar Pradesh. However, certain disputes arose between the parties, leading to the matter being referred to arbitration.

Following the parties reaching a settlement in respect of the arbitration, the Arbitral Tribunal passed its final award. This resolution has significant implications for UltraTech's asset portfolio and financial position, effectively resolving the ₹1,000 crore contingency.

Impact of the Settlement

With the arbitration settlement, several key outcomes have been achieved:

The settlement brings closure to a complex arrangement that has been pending since 2017, allowing UltraTech to gain complete control over the Dalla Super unit and associated mining assets in Uttar Pradesh. This resolution eliminates the ₹1,000 crore contingent liabilities associated with the escrowed preference shares and provides clarity on the company's asset ownership structure.

Regulatory Compliance

UltraTech Cement has informed the stock exchanges about this development in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has notified BSE Limited and The National Stock Exchange of India Limited, as well as international exchanges including Luxembourg Stock Exchange and Singapore Exchange where its securities are listed.

UltraTech Cement Limited has disclosed receiving an order from GST authorities regarding tax demand and penalty totaling ₹51.47 lakh. The company made this disclosure on March 26, 2026, in compliance with Regulation 30 of SEBI listing obligations.

GST Authority Order Details

The Assistant Commissioner, Central Goods and Services Tax, Kerala, has passed an Order in Original against UltraTech Cement. The order was received by the company on March 25, 2026.

Nature of Alleged Violation

The GST order pertains to alleged irregular availment of Input Tax Credit (ITC) on blocked credit. The violation period spans from FY2019-20 to FY2022-23, covering a four-year period of the company's operations.

The order specifically addresses issues related to ITC availment that the GST authority considers to be irregular under the applicable tax regulations.

Company's Response and Financial Impact

UltraTech Cement has indicated its intention to contest the demand imposed by the GST authority. The company has stated that it does not expect the order to have any material financial impact on its operations.

Key Company Positions:

• Plans to contest the GST demand through appropriate legal channels
• Expects no material financial impact from the order
• Maintains compliance with regulatory disclosure requirements

Regulatory Compliance

The disclosure was made in accordance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary and Compliance Officer Dhiraj Kapoor signed the disclosure document on March 26, 2026.

The company has informed all relevant stock exchanges including BSE Limited, National Stock Exchange of India Limited, Luxembourg Stock Exchange, and Singapore Exchange about this development as part of its regulatory obligations.