Deepak Fertilisers' subsidiary gets favorbale verdict from Delhi High Court

The Hon'ble High Court of Delhi on 3rd December 2020 heard the matter in the Writ Petition filed by Smartchem Technologies Limited (STL), wholly owned subsidiary of Deepak Fertilisers and Petrochemicals Corporation Limited, and has directed Department of Fertilisers (DOF), Ministry of Chemicals and Fertilisers, to return the Bank Guarantee for a sum of Rs. 31,052 Lakhs to the Petitioner (STL) within a period of 4 weeks.

The facts of the Case are reiterated below:

The Department of Fertilisers (DoF), Ministry of Chemicals and Fertilisers, had withheld subsidy, due to the Group in accordance with applicable Nutrient Based Subsidy (NBS) scheme of Government of India (GOI), alleging undue gain arising to the Group on account of supply of "cheap" domestic gas. Subsequently, DoF agreed to release subsidy against Bank Guarantee of Rs. 31,052 Lakhs pending final decision, with regard to undue gain.

Ministry of Chemical and Fertilisers has issued an official memorandum on 15th May 2020, stating that the issue of recovery of undue profit from P&K fertilisers companies has been settled finally in DoF and accordingly nothing is recoverable presently towards undue gain. Subsequently, STL filed the writ petition in the Hon'ble Delhi High Court asking for release of Bank Guarantee. Hon'ble Delhi High Court has accepted the petition of STL on 3rd December, 2020, and directed to release the Bank Guarantee, which was pronounced in the open court.

The written order of the Hon'ble High Court of Delhi is awaited.

Shares of DEEPAK FERTILISERS & PETROCHEMICALS CORPORATION LTD. was last trading in BSE at Rs.152.05 as compared to the previous close of Rs. 153.8. The total number of shares traded during the day was 104819 in over 1868 trades.

The stock hit an intraday high of Rs. 155.2 and intraday low of 151. The net turnover during the day was Rs. 16017461.

Source : Equity Bulls

Keywords