Dalmia Bharat Limited has received significant relief in a money laundering case as the Appellate Tribunal under the Prevention of Money Laundering Act substantially reduced the Proceeds of Crime against its subsidiary from ₹793.34 crore to ₹92.52 crore. The tribunal's order provides major respite to the cement manufacturer, which has been dealing with regulatory challenges including earlier Competition Commission investigations into bid rigging practices.

Tribunal Order Details

The PMLA Tribunal delivered its final order on March 9, 2026, which was received by Dalmia Bharat on March 11, 2026. The decision partially allowed the appeal filed by Dalmia Cement (Bharat) Limited (DCBL), the company's material wholly owned subsidiary, against the Enforcement Directorate's provisional attachment order.

Background of the Case

The case originated from a Provisional Attachment Order dated March 31, 2025, issued by the Enforcement Directorate, Hyderabad, against DCBL. The order provisionally attached land parcels belonging to the subsidiary, with the attachment later confirmed by the Adjudicating Authority on September 22, 2025. The company had previously disclosed these developments to stock exchanges in April and September 2025.

Impact on Operations

Following the tribunal's decision, the land parcels of DCBL that were attached by the Enforcement Directorate will be correspondingly reduced in line with the lower PoC amount. The company stated that DCBL will make necessary applications before the ED for release of the attached land parcels, including substitution by any other security as per the tribunal's final order.

Company's Response and Future Action

Despite the substantial reduction in the PoC amount, DCBL maintains its position that it does not agree with the tribunal's findings regarding the ₹92.52 crore being classified as Proceeds of Crime. The company is examining the tribunal's order and, based on legal advice, plans to pursue appropriate legal remedies by challenging the order before the appropriate forum.

Regulatory Context

This development comes amid ongoing regulatory scrutiny of the cement industry. Earlier investigations by the Competition Commission of India had revealed anti-competitive practices within the sector, including bid rigging activities involving multiple cement companies over extended periods. The current PMLA case represents a separate regulatory challenge that Dalmia Bharat has been navigating through proper legal channels.

Dalmia Bharat has shared its strategic outlook and growth expectations during a recent conference call, highlighting the company's optimistic view of market opportunities in the East region. The cement manufacturer has outlined specific targets and growth projections that reflect its confidence in both regional market dynamics and its competitive positioning.

Regional Market Outlook

The company anticipates high single-digit cement demand growth specifically in the East region. This projection indicates the company's positive assessment of infrastructure development, construction activities, and overall economic growth drivers in the eastern markets of India.

Volume Growth Strategy

Dalmia Bharat expects to outperform the industry in volume growth, demonstrating confidence in its operational capabilities and market strategy. The company's expectation to exceed industry benchmarks suggests strong fundamentals in production capacity, distribution network, and customer relationships.

Trade Share Targets

The company has established clear objectives for its trade share performance, targeting levels in the mid-60s to high-60s range. This ambitious target reflects the company's focus on strengthening its position in trade channels and expanding its commercial market presence.

These strategic projections and targets indicate Dalmia Bharat's confidence in its market position and growth potential, particularly in the East region where the company sees significant opportunities for expansion and market share gains.