Vanmora Granito faces Rs 8.267 crore in pending tax disputes

Vanmora Granito Limited has 19 pending tax proceedings involving Rs 8.267 crore, to the extent quantifiable, and has filed 58 cheque-dishonour complaints involving Rs 7.302 crore to recover its dues. Indirect-tax proceedings account for 17 cases and Rs 8.103 crore of the company’s disclosed tax amount as of the addendum date.

What tax disputes does Vanmora Granito face?

Vanmora Granito faces two direct-tax proceedings and 17 indirect-tax proceedings, with 19 company tax matters together involving Rs 8.267 crore. The disclosure describes the figure as the amount in dispute or demand, to the extent quantifiable, rather than as a final liability, provision or amount paid.

Vanmora Granito’s tax exposure is concentrated in indirect taxes. The 17 indirect-tax matters represent about 89.5% of the 19 disclosed tax cases and account for about 98.0% of the Rs 8.267 crore total, while the two direct-tax matters involve Rs 16.4 lakh. The outcome of the indirect-tax proceedings therefore accounts for most of the disclosed tax amount.

The addendum does not identify the statutes, assessment years, courts or authorities, or company-specific amounts for the 19 tax proceedings. It also does not state Vanmora Granito’s legal arguments, the stage of each matter or a probable payment outcome. The aggregate amount consequently measures pending quantified disputes or demands, not an established payable amount.

How does Vanmora Granito’s tax amount compare with its materiality threshold?

Vanmora Granito’s Rs 8.267 crore company tax-dispute amount is above the Rs 2.18 crore threshold used under its materiality policy for other pending litigation. The board adopted that policy at its meeting on July 28, 2025, for identifying material outstanding litigation involving the company, subsidiaries, directors and promoters, which the disclosure calls Relevant Parties.

The policy selected the lowest of three financial benchmarks based on Restated Consolidated Financial Information: 2% of preceding-year turnover of Rs 30.249 crore, 2% of preceding-year net worth of Rs 15.912 crore, and 5% of the average absolute profit or loss after tax for the preceding three financial years of Rs 2.18 crore. The Rs 8.267 crore tax total is about 3.8 times the resulting Rs 2.18 crore threshold.

The policy can also require disclosure where a proceeding has an unquantifiable monetary liability, could have a material adverse effect in the board’s opinion, or is one of similar cases whose cumulative value exceeds the threshold. A case does not therefore need to exceed Rs 2.18 crore individually for the policy to capture it. The policy does not determine the eventual outcome or financial liability of a proceeding.

What are Vanmora Granito’s 58 cheque-recovery complaints?

Vanmora Granito has filed 58 criminal complaints against various persons under Section 138 read with Sections 141 and 142 of the Negotiable Instruments Act, 1881, alleging dishonour of cheques linked to recovery of company dues. The aggregate amount involved in these pending complaints is Rs 7.302 crore as of the addendum date.

Section 138 deals with cheque dishonour in specified circumstances under the Negotiable Instruments Act. Vanmora Granito says the 58 matters are pending at different stages before various courts and judicial fora, but does not disclose the defendants, case-wise amounts, filing dates, court locations or expected recovery dates.

The Rs 7.302 crore is an amount involved in claims brought by Vanmora Granito, not a claim asserted against it or a reported cash collection. It is Rs 96.5 lakh lower than the company’s Rs 8.267 crore tax-dispute amount, although the 58 cheque complaints outnumber the 19 company tax proceedings. Conversion of the claims into cash depends on adjudication and recovery from the persons named in the complaints.

What other litigation and regulatory matters are disclosed?

Vanmora Granito is considering an appeal after the National Green Tribunal, Western Zone Bench, Pune, dismissed relevant appeals on February 25, 2026 and upheld Gujarat Pollution Control Board directions requiring the company to pay a Rs 23.9 lakh penalty. The directions were issued under Section 33A of the Water (Prevention and Control of Pollution) Act, 1974 and Section 31A of the Air (Prevention and Control of Pollution) Act, 1981.

The matter followed a National Green Tribunal order of March 6, 2019 that directed closure of coal-gasifier industries, required units using coal gasifiers to switch to non-coal gasifiers, and directed pollution-control action for environmental damage and public-health compensation. Notices dated September 11, 2019 sought interim compensation of Rs 96.5 lakh from Vanmora Granito, Rs 40.3 lakh from Tocco Ceramic Private Limited and Rs 184 lakh from Solaris Ceramics Private Limited.

Tocco Ceramic Private Limited and Solaris Ceramics Private Limited were amalgamated into Vanmora Granito with effect from April 1, 2023, and the disclosure says any sums payable by those entities would be borne by Vanmora Granito. The company filed a special civil application before the Gujarat High Court on December 21, 2019 seeking, among other relief, to quash the notices. Further notices seeking payment of 25.00% of interim compensation were issued on April 11, 2022 and another set of notices was issued on August 2, 2024.

Vanmora Granito’s subsidiaries separately have two indirect-tax proceedings involving Rs 12 lakh, while no direct-tax proceedings involving subsidiaries were disclosed. The addendum reports no direct- or indirect-tax proceedings involving Vanmora Granito’s directors. These are separate litigation categories and are not additions to the company’s 19 tax proceedings involving Rs 8.267 crore.

Conclusion

Vanmora Granito’s disclosed litigation position combines Rs 8.267 crore across 19 company tax proceedings, principally 17 indirect-tax cases, with Rs 7.302 crore across 58 pending cheque-dishonour complaints filed to recover dues. The tax total exceeds the Rs 2.18 crore materiality threshold, while the cheque matters remain recovery claims rather than disclosed collections.

The stated next development is Vanmora Granito’s consideration of an appeal against the February 25, 2026 National Green Tribunal ruling that upheld a Rs 23.9 lakh penalty. Updates on that decision, the quantified indirect-tax matters and the progress of the 58 cheque complaints will determine whether the disclosed litigation and recovery amounts change.