IRCON International has suffered a significant legal setback as the Patna High Court dismissed its writ petition challenging VAT assessments related to the Ganga Bridge Project. The court's judgment dated February 25, 2026, upheld the assessing authority's demands, leaving the company with substantial financial obligations.

Court Judgment Details

The Patna High Court's decision represents a major blow to IRCON International's legal strategy. The company had challenged VAT assessments through a writ petition and secured a stay on recovery proceedings. However, after hearings concluded in early December 2025, the court reserved its order and subsequently dismissed the petition on February 25, 2026.

Financial Impact and Outstanding Demands

The VAT assessments for the Ganga Bridge Project span multiple years from 2010-11 to 2016-17, resulting in a total demand of ₹108.75 crore. This amount has been appropriately reflected as a contingent liability in the company's books. IRCON has already deposited ₹27.39 crore toward this demand, leaving a net outstanding amount of ₹81.36 crore.

The outstanding amount of ₹81.36 crore is exclusive of up-to-date interest, which is yet to be calculated by the VAT department. This additional interest component could further increase the company's financial burden.

Company's Response and Future Actions

Following the adverse judgment, IRCON International is currently reviewing the detailed court order to assess its options. The company has indicated its intention to pursue appropriate further actions, including the possibility of filing an appeal to a higher court. This suggests that the legal battle may continue despite the current setback.

The company made this disclosure under Regulation 30 of the SEBI Listing Regulations, continuing from its previous communication dated August 14, 2023. The disclosure was signed by Company Secretary and Compliance Officer Pratibha Aggarwal on February 26, 2026.

Source: None/Company/INE962Y01021/11ffb369-0099-4afe-91f9-d8f074a3fcd9.pdf

IRCON International Limited has announced that the National Stock Exchange of India Limited (NSE) has granted a waiver for fines that were levied against the company for delayed compliance with certain SEBI regulations. The development was communicated through a disclosure made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 on February 17, 2026.

NSE Grants Fine Waiver

The NSE, through its letter dated February 16, 2026, informed IRCON International that the company's waiver application was placed before the relevant authority and was considered favorably. The fines were originally imposed for delays in compliance with specific provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Details of Waived Compliance Issues

The fine waiver covers non-compliance issues across multiple quarters for two key regulatory requirements:

Regulatory Framework

The waiver pertains to compliance requirements under SEBI's listing regulations, which mandate listed companies to maintain specific committee structures and reporting timelines. Regulation 20(2)/(2A) relates to the constitution and functioning of the Stakeholder's Relationship Committee, while Regulation 21(2) concerns the Risk Management Committee requirements.

Company Communication

The disclosure was signed by Pratibha Aggarwal, Company Secretary and Compliance Officer of IRCON International, with membership number F8874. The communication was made pursuant to the company's obligations under Regulation 30 of SEBI (LODR) regulations, which requires disclosure of material events and information.

About the Development

This favorable decision by NSE provides relief to IRCON International from the financial impact of the compliance-related fines. The waiver demonstrates the exchange's consideration of the company's circumstances and its application for relief from the penalties that were imposed for the delayed compliance across the specified quarters in 2024-25.