KEC International Limited has informed stock exchanges about receiving a GST adjudication order from Rajasthan authorities, marking a regulatory development that the company plans to contest through legal channels.

GST Order Details

The company received the order from GST Authority, Rajasthan on December 22, 2025, as part of a regulatory disclosure made under SEBI listing regulations. The order addresses alleged discrepancies in GST payments based on comparison between different GST return filings.

Financial Implications

The GST order involves significant financial components that the company will need to address through its legal strategy.

Company's Response Strategy

KEC International has outlined its approach to handling the GST order, emphasizing its intention to challenge the demand through proper legal channels. The company stated it is currently reviewing the order details and will seek appropriate legal remedy to contest the demand.

The management has indicated that it does not foresee any material financial impact on account of this order, suggesting confidence in its position regarding the alleged GST discrepancies.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrating the company's commitment to maintaining transparency with stakeholders regarding regulatory developments that could potentially impact its operations.

KEC International has received significant relief from the High Court, which has stayed Power Grid Corporation of India Limited's (PGCIL) order excluding the company from tender participation for a period of 9 months. This judicial intervention provides the infrastructure company with the opportunity to continue its business operations without the imposed restrictions.

Court Stay Order Details

The High Court's ruling specifically stays PGCIL's exclusion order that would have prevented KEC International from participating in tender processes. The court's decision to stay this exclusion demonstrates judicial oversight in matters affecting business operations and competitive bidding processes.

Business Continuity Provisions

The court's stay order allows KEC International to maintain its participation in ongoing projects and continue submitting bids during the legal proceedings. This ensures that the company's business activities remain uninterrupted while the matter is under judicial review.

Ongoing Tender Participation Rights

Under the High Court's stay order, KEC International retains the right to participate in bidding processes for ongoing projects until further notice from the court. This provision ensures business continuity and protects the company's interests during the legal proceedings.

The development represents a crucial turning point for KEC International, allowing the company to maintain its market position and continue pursuing business opportunities in the infrastructure sector while the legal matter remains under consideration.