Refex Renewables & Infrastructure reports an operational shutdown at its Kolhapur CBG plant due to a legal conflict with Warana Sugar. While the subsidiary disputes outstanding claims of Rs 18.48 crore, the cessation of plant activity poses a material operational challenge. The company has moved to the District Civil Court seeking relief to resume site access.
Refex Renewables Subsidiary Reports Operational Halt After Dispute
Operational shutdown at Kolhapur Compressed Bio Gas (CBG) plant.
Rs 18.48 crore claimed as outstanding dues by counterparty.
Reader Takeaway: Subsidiary disputes liability citing prior settlement; legal action initiated to restore plant access and operations.
What just happened
Refex Renewables & Infrastructure has disclosed that its step-down subsidiary, Refex CBG Kolhapur, is facing a severe operational disruption. The company reports that Warana Sugar has restricted access to its CBG plant located in Kolhapur, Maharashtra, and has cut off essential supplies including electricity and water. This has led to an immediate halt in plant operations.
Why this matters
The conflict stems from a payment dispute. Warana Sugar alleges that the subsidiary owes Rs 18.48 crore. However, Refex CBG Kolhapur asserts that all such dues were fully settled during the acquisition of the entity by Refex Sustainability Solutions in August 2025. The disruption impacts the company's output and operational cash flow, making the legal resolution critical for the asset's viability.
What changes now
Refex CBG Kolhapur has filed a case in the District Civil Court, Kolhapur, seeking interim relief to regain access to the plant and restore utility services. Warana Sugar has also initiated legal proceedings in response. The company stated that the financial impact—including potential compensation or penalties—cannot be quantified at this stage, and it is currently assessing the full scope of the fallout.
Risks to watch
Investors should monitor the court proceedings, as a prolonged shutdown could affect the subsidiary’s revenue streams and asset valuation. The uncertainty regarding the financial liability of Rs 18.48 crore remains a key risk factor for shareholders until a judicial or amicable resolution is reached.
What to track next
Watch for subsequent disclosures regarding the court's stance on interim relief, potential settlements, and any timeline provided for the resumption of plant operations.