Dhanuka Agritech has received seven tax demand orders totaling Rs 55.53 crore from the Haryana Excise & Taxation Department. The demands relate to assessment years from FY 2008-09 to FY 2014-15. Management is currently contesting the orders, claiming they are not maintainable, and plans to challenge them in court. The company stated that it does not expect these demands to impact its current financial position or ongoing business operations.
Dhanuka Agritech Faces Rs 55.53 Crore Tax Demand
Total tax demand: Rs 55.53 crore across seven financial years.
Company response: Contesting the demand as non-maintainable and planning a legal challenge.
Reader Takeaway: Management maintains tax orders are invalid and expects no material impact on current financial performance or operations.
What just happened
Dhanuka Agritech Limited informed the BSE on October 06, 2026, that it received seven demand orders from the Excise & Taxation Department, Gurugram. These demands fall under the Haryana Tax on Entry of Goods into Local Areas Act, 2008. The assessment periods cover FY 2008-09 through FY 2014-15.
Demand Breakdown
The cumulative tax liability claimed by the state authorities is Rs 55.53 crore. The annual breakdown ranges from Rs 5.64 crore for FY 2008-09 to Rs 10.75 crore for FY 2014-15, reflecting a progressive increase over the seven-year period.
Why this matters
While the company has publicly dismissed the financial impact of these orders, a claim exceeding Rs 55 crore represents a significant litigation expense and potential capital outflow if the court rulings are unfavorable. Investors should watch how the company navigates this legal challenge through the proposed writ petition.
Risks to watch
Key risks include the potential for prolonged legal proceedings, the possibility of a negative court ruling requiring the payment of the principal amount along with interest or penalties, and the distraction of management resources to address these historical tax assessments.
What to track next
Shareholders should monitor future regulatory updates or court disclosures regarding the filing of the writ petition and any subsequent orders issued by the appellate authorities in Haryana.