Supreme Court Stays ₹78.64 Crore VAT Demand Against IRCON International Ltd

New Delhi: In a significant development for the infrastructure sector, the Hon’ble Supreme Court of India has stayed the VAT demands raised against IRCON International Limited related to the Ganga Bridge Project. This follows the Patna High Court’s earlier judgment on 25th February, 2026, which had upheld the VAT demands for fiscal years 2010-11 to 2016-17, excluding FY 2011-12.

The stay, issued on 16th March, 2026, comes in response to Special Leave Petitions (Civil) Nos. 10008-10010 of 2026 filed by IRCON challenging the Patna High Court judgment. The Supreme Court’s order halts the operation of the High Court’s decision pending the disposal of the petitions. The original tax demand amounted to approximately ₹78.64 crore for the disputed years.

Background:
The VAT demands were related to three Civil Writ Jurisdiction Cases – CWJC No. 11625 of 2019, CWJC No. 3600 of 2020, and CWJC No. 1716 of 2023 – concerning FY 2013-14, FY 2014-15, and FY 2016-17. The Patna High Court had directed IRCON to pay the tax and interest for these years, which the company contested through its petitions in the Supreme Court.

IRCON’s Statement:
Pratibha Aggarwal, Company Secretary & Compliance Officer of IRCON, confirmed the development, stating that the Supreme Court’s notice to the VAT department effectively stays the demand for all six disputed years. This ensures that IRCON will not be required to make any immediate payments until the final disposal of its Special Leave Petitions.

The development is expected to provide temporary relief to IRCON, allowing the company to focus on ongoing infrastructure projects without the immediate financial burden of disputed VAT payments.

Impact:
Market analysts suggest that the stay order is likely to have a neutral to positive effect on investor sentiment, as it removes immediate liability uncertainty. IRCON continues to operate its projects across India, including major transportation and bridge projects.