Birla Corporation Limited has received demand orders totaling ₹9.67 crore from the Collector of Stamps, Satna, Madhya Pradesh, relating to alleged deficit in stamp duty and registration fees on mining leases of its wholly owned subsidiary RCCPL Private Limited.

Regulatory Disclosure Details

The company made the disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, on January 22, 2026. The orders were dated January 19, 2026, and received by company officers on January 21, 2026, at approximately 3:43 p.m. IST.

Breakdown of Demand Orders

The Collector of Stamps has issued separate demand orders for two mining properties under Section 48(B) of the Indian Stamp (M.P. Amendment) Act, alleging wrongful computation of stamp duty and registration fees due to undervaluation at the time of registration.

Nature of Alleged Violations

The demand orders specifically target the computation of stamp duty and registration fees during the initial registration of the mining leases. The authority alleges that RCCPL Private Limited undervalued the mining leases at the time of registration, resulting in lower payment of statutory fees than required under applicable regulations.

Company's Response and Financial Impact

Birla Corporation has stated that it believes the demand of ₹9.67 crore is not tenable and is in the process of filing an appeal against the orders. The company has quantified the total financial impact at ₹9,67,42,003.00, representing the combined demand for both mining properties.

Subsidiary Information

RCCPL Private Limited operates as a wholly owned material subsidiary of Birla Corporation Limited. The subsidiary holds mining leases for the Sadhera Limestone Mines and Bandhi Gorwai Limestone Mines, both located in Madhya Pradesh and subject to the current stamp duty demand orders.

Birla Corporation Ltd, the flagship company of MP Birla Group, announced that the Rajasthan government has rejected its bid for the Gourum Khan Ki Dhani (South) limestone block, despite being declared the preferred bidder earlier.

Bid Details and Timeline

The company had achieved preferred bidder status when it was declared by the Government of Rajasthan's Director of Mines and Geology on June 13, 2025. This status was awarded based on Birla Corporation's highest final price offer in the competitive bidding process.

Government's Rejection Order

The Department of Mines and Petroleum, Government of Rajasthan, issued an order on December 31, 2025, rejecting Birla Corporation's bid. The rejection was executed under Clause 14.11 of the Tender Document, which grants the government discretionary powers in the bidding process.

According to the official order, the company's final price offer of 20.60% was deemed comparatively lower than bids received in auctions of other similar limestone blocks in the region. This comparative analysis formed the basis for the government's decision to reject the bid despite Birla Corporation's initial preferred status.

Company's Compliance and Response

Birla Corporation emphasized its full compliance with the auction process and regulatory requirements. The company participated in the e-auction process in accordance with applicable laws and tender conditions, meeting all procedural requirements within prescribed timelines.

The company stated it is currently examining the matter to determine its future course of action, including the possibility of pursuing legal recourse against the rejection.

Market Impact

The limestone block rejection adds to the company's recent challenges in securing raw material resources for its cement operations. Birla Corporation operates in the cement sector and is classified as a mid-cap company with significant market presence in the industry.