IRCON Hit with ₹108.75 Crore VAT Setback as Patna High Court Dismisses Plea

New Delhi: IRCON International Limited has informed stock exchanges that the Hon’ble Patna High Court has dismissed its writ petition in connection with VAT assessments related to the Ganga Bridge Project.

The judgement, dated February 25, 2026, pertains to VAT assessment orders for the financial years 2010-11 to 2016-17.

Background of the Case

The VAT assessments for the Ganga Bridge Project had resulted in a total demand of ₹108.75 crore. IRCON had earlier challenged the assessment orders before the Patna High Court and secured a stay on recovery proceedings.

After hearings concluded in early December 2025, the matter was reserved for orders. The High Court has now upheld the demands raised by the assessing authority and dismissed IRCON’s petition.

Financial Impact

Out of the total demand of ₹108.75 crore, IRCON has already deposited ₹27.39 crore. The net outstanding amount stands at ₹81.36 crore, excluding up-to-date interest, which is yet to be calculated by the VAT department.

The company had already disclosed the amount as a contingent liability in its financial statements.

Next Steps

IRCON stated that it is reviewing the detailed judgement and will take appropriate further action, including the possibility of filing an appeal before a higher court.

The disclosure has been made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company clarified that the litigation does not involve any key managerial personnel, promoter, or person in control.

Market Relevance

Given the size of the demand and the potential financial implications, the development is considered material and has been disclosed to both BSE and NSE in compliance with regulatory norms.

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