Dalmia Bharat , through its wholly owned subsidiary Dalmia Cement (Bharat) Limited (DCBL), has successfully appealed against GST penalties related to delayed return filings, resulting in a waiver of Rs 5.64 lakh in interest and penalties.

Appeal Details

The Office of Additional Commissioner of State Tax (Appeal) in Dhanbad, Jharkhand has waived off the entire demand of:

• Rs 4.89 lakh in interest
• Rs 0.75 lakh in penalty

These penalties were originally imposed for delays in filing GSTR-3B returns for July 2017 and November 2017 by Dalmia Cement East Limited, which has since merged with DCBL.

Timeline of Events

• Dalmia Cement (Bharat) Limited received an order from the Assistant Commissioner of State Tax, Bokaro Circle, Bokaro, Jharkhand, confirming the demand for interest and penalty.
• Dalmia Bharat made an initial disclosure regarding the matter.
• The appeal order was received at 12:42 P.M., waiving off the entire amount of interest and penalty.
• Dalmia Bharat filed a disclosure under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, informing about the successful appeal.

Financial Impact

Dalmia Bharat has confirmed that there will be no financial impact on the subsidiary as a result of this successful appeal. The waiver of Rs 5.64 lakh in interest and penalties provides relief to the company from the previously imposed financial burden.

Company Statement

In its disclosure to the stock exchanges, Dalmia Bharat stated, "Pursuant to the appeal filed by DCBL in the matter, the Office of Additional Commissioner of State Tax (Appeal), Dhanbad Division, Dhanbad, Jharkhand, has now passed an Order allowing the said appeal and waiving off the entire aforesaid demand of interest and penalty. Accordingly, there will be no financial impact on DCBL."

This successful appeal demonstrates the company's proactive approach in addressing regulatory matters and its commitment to maintaining compliance with tax regulations while protecting its financial interests.

India's Competition Commission has given its approval to Dalmia Bharat 's proposal for a complete acquisition of Jaiprakash Associates Ltd (JAL) through its wholly-owned subsidiary, Dalmia Cement (Bharat) Ltd. This development marks a significant step in the ongoing insolvency proceedings of JAL, a company grappling with a substantial debt burden of ₹57,185.00 crore.

Insolvency Proceedings and CCI Approval

JAL was admitted to the corporate insolvency resolution process by the National Company Law Tribunal (NCLT) Allahabad on June 3. The Competition Commission of India's (CCI) approval is a crucial and mandatory step under the Insolvency and Bankruptcy Code, paving the way for the submission of resolution plans to the Committee of Creditors.

Multiple Bidders in the Fray

While Dalmia Bharat has secured CCI approval, it's not the only player eyeing JAL's assets. Other prominent bidders, including Adani Enterprises, Vedanta Group, Jindal Power, and PNC Infratech, have also sought CCI clearance for their respective resolution plans. This indicates a competitive landscape for the acquisition of JAL's diverse asset portfolio.

JAL's Asset Portfolio

Jaiprakash Associates Ltd operates across multiple sectors, including:

• Cement
• Real Estate
• Hospitality
• Engineering

The company's assets include:

• Stalled real estate projects in Greater Noida
• A sports city project near Jewar airport
• Hospitality properties in Delhi-NCR, Agra, and Mussoorie
• Non-operational cement plants in Madhya Pradesh and Uttar Pradesh

Debt Situation and Major Creditor

The National Asset Reconstruction Company Ltd (NARCL) has emerged as JAL's largest creditor after acquiring loans from a consortium led by the State Bank of India. This positions NARCL as a key stakeholder in the ongoing resolution process.

Implications and Next Steps

The CCI's approval of Dalmia Bharat's acquisition bid represents a critical milestone in JAL's insolvency proceedings. As the process unfolds, the Committee of Creditors will evaluate the resolution plans submitted by various bidders. The outcome of this process could potentially lead to a significant restructuring of JAL's operations and debt, with far-reaching implications for the company's future and its various stakeholders.