Zuari Agro Chemicals Receives Rs 296 crore Water Charge Claim
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Zuari Agro Chemicals Limited faces a legal claim for water and sewerage charges amounting to Rs 296,45,99,341 (≈ Rs 296 crore), creating a contingent liability of about Rs 300 crore.
- Demand notice received on 28 Apr 2026 from the Office of the Executive Engineer, WD IV DDW Fatorda, Goa, demanding Rs 296,45,99,341.
- The company disputes the claim, says there are no prior defaults, and will contest the notice through legal channels.
- Contingent liability of roughly Rs 300 crore is disclosed; it is not yet provisioned, so there is no immediate cash outflow.
- Outcome scenarios: if the claim is dismissed, there’s no impact; if upheld, the full amount must be provisioned, hitting earnings and cash reserves.
- Investor focus: monitor court developments, any future provisions or settlements, and assess the company’s liquidity to absorb a potential large liability.
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