Eureka Forbes has been directed by a court to settle 10% of its outstanding tax liability of ₹162.20 crore, marking a significant development in the company's ongoing tax dispute proceedings.

Court Directive Details

The judicial order requires the home appliances and water purification solutions company to pay a portion of its total tax obligation as part of the dispute resolution process. The court's decision to mandate a 10% settlement suggests an interim measure while the broader tax matter remains under legal consideration.

Financial Impact

The following table outlines the key financial parameters of the court directive:

Legal Proceedings Context

This court directive represents a structured approach to resolving the tax dispute, with the partial payment requirement potentially serving as a compliance measure. The 10% settlement order indicates the court's intention to secure some immediate resolution while allowing the legal process to continue for the remaining liability.

The development highlights the ongoing nature of tax-related legal proceedings that can significantly impact corporate financial obligations and compliance requirements.

Eureka Forbes Limited has secured interim relief from the Madhya Pradesh High Court at Jabalpur in its ongoing GST dispute case involving a tax demand of ₹16.22 crores. The court's order on January 07, 2026, provides protection against coercive action subject to specific conditions.

Court Proceedings and Order Details

The High Court heard Eureka Forbes' writ petition on January 07, 2026, which challenged an assessment order dated October 09, 2025. After hearing arguments from both sides, the court issued a favorable interim order for the company.

The company has confirmed it is in the process of depositing the required 10% amount as directed by the court.

Background of GST Dispute

The dispute stems from an assessment order issued by the Joint Commissioner, CGST & Central Excise Bhopal, which demanded a total tax liability of ₹16,22,32,387 along with penalties. The tax authorities alleged excess availment of Input Tax Credit and short payment of outward tax spanning multiple financial years.

Company's Position and Financial Impact

Eureka Forbes has maintained its position by challenging the assessment order through legal channels. The company filed the writ petition before the High Court to contest the tax demand and associated penalties.

Regarding the financial implications of this legal matter, the company has provided a clear assessment in its regulatory disclosure:

• Expected Financial Impact: The company does not envisage any material impact on financials, operations, or other activities at this stage
• Quantum of Claims: Not applicable
• Current Status: Proceeding with court-directed deposit of 10% tax demand

Regulatory Compliance and Disclosure

The company has fulfilled its disclosure obligations under SEBI regulations by informing both BSE and NSE about this significant legal development. This update follows an earlier communication dated October 16, 2025, when the company first disclosed receiving the GST assessment order.

The disclosure was made in compliance with Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring transparency with stakeholders about material legal proceedings affecting the company.