Ramco Industries Limited has successfully resolved a prolonged legal dispute with the West Bengal government regarding entry tax matters through the state's Settlement of Dispute (SOD) Scheme. The company announced the resolution in a regulatory filing dated January 30, 2026, marking the end of litigation that had been ongoing since 2013.

Background of the Dispute

The legal battle originated when the Government of West Bengal enacted "The West Bengal Tax on Entry of goods into Local Areas Act, 2012." Ramco Industries challenged the validity of this Act through writ petitions, arguing that the entry tax provisions were unconstitutional. Initially, the company received favorable judgment when a Single Judge passed an order on June 24, 2013, declaring the entry tax law as ultra vires and unconstitutional.

The case progressed through multiple judicial forums over the years. The West Bengal Taxation Tribunal passed an order on March 25, 2022, stating that the State of West Bengal lacked legislative competence to introduce Sections 5 and 6 (Entry tax) of the West Bengal Finance Act, 2017, declaring these provisions ultra vires and unconstitutional.

Recent Legal Developments

The litigation took a turn when the department filed an appeal with the High Court, which passed an order favoring the government on January 30, 2025. Ramco Industries received this order on February 3, 2025, and subsequently filed an appeal with the Supreme Court on April 29, 2025.

Settlement Through SOD Scheme

Recognizing the benefits of the West Bengal government's Settlement of Dispute Scheme, Ramco Industries opted to resolve the matter through this mechanism. The company submitted Form 1 on August 29, 2025, initiating the settlement process. The scheme offered significant advantages, including a 25% reduction in the disputed amount and complete waiver of interest and penalty charges.

The settlement process progressed smoothly with the company receiving Form 2 (Provisional Certificate) on multiple dates:

• September 11, 2025: for FY 2015-16 and FY 2016-17
• September 18, 2025: for AY 2013-14, FY 2014-15, and FY 2017-18

Final Resolution

Under the SOD Scheme provisions, if no Form 3 (Departmental Objection) is received within ninety days from Form 1 submission (by November 27, 2025), the issued Form 2 becomes final. Since no objections were raised, the litigation is now considered resolved.

Ramco Industries also successfully withdrew its case from the Supreme Court, with the court allowing the withdrawal and dismissing the Special Leave Petition as "not pressed" due to the company availing the remedy under the West Bengal Sales Tax Settlement of Dispute scheme.

Financial Benefits

Through the settlement scheme, Ramco Industries achieved significant cost savings. The company paid ₹2.21 crore representing 75% of the entry tax payable, while securing a benefit of ₹74 lakh (25% of the disputed amount). Additionally, the complete waiver of interest and penalty charges provided substantial financial relief, considering the interest liability had accumulated to ₹729.23 lakhs as of June 30, 2025.

The resolution of this long-standing litigation removes a significant contingent liability from the company's books and provides clarity on its tax obligations in West Bengal for the disputed period from June 2013 to June 2017.

Ramco Industries Limited has announced that its Board of Directors will meet on February 11, 2026, to review the company's quarterly financial performance. The meeting is scheduled to consider the unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025.

Board Meeting Details

The board meeting will be conducted at the company's corporate office located at No: 98-A, Dr. Radhakrishnan Road, Mylapore, Chennai-4. The meeting has been designated as Board Meeting No: 5/2025-26 and will focus on reviewing the financial performance for the third quarter of fiscal year 2026.

Trading Window Restrictions

In accordance with the company's regulatory compliance requirements, Ramco Industries has implemented trading window restrictions. The trading window for dealing in the company's securities remains closed for directors and other designated persons, including their immediate relatives, until February 13, 2026.

This restriction is part of the company's Code of Conduct to Regulate, Monitor and Report Trading by Designated Persons and their Immediate Relatives, as well as the Code of Practices and Procedures for Fair Disclosure. The trading window closure was initially communicated through a letter dated December 26, 2025.

Regulatory Compliance

The board meeting announcement has been made in strict compliance with the provisions of Regulations 29 and 50 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notification was signed by S. Balamurugasundaram, Company Secretary and Legal Head, and submitted to both the National Stock Exchange of India Limited and BSE Limited.

The company continues to maintain its commitment to transparent disclosure practices and regulatory compliance as it prepares to announce its third-quarter financial performance to stakeholders and the investment community.