Deepak Fertilizers and Petrochemicals Corporation Limited (DFPCL) has informed that the High Court of Delhi with respect to writ petition filed by Smartchem Technologies Limited (STL), a wholly owned subsidiary of the company, has directed the Department of Fertilisers to return the bank guarantee a sum of Rs. 310.52 crores to STL within a period of four weeks.

 

The Department of Fertilisers (DoF), Ministry of Chemicals and Fertilisers, had withheld the subsidy in accordance with applicable Nutrient Based Subsidy (NBS) scheme of Government of India alleging undue gain arising to the Group on account of supply of cheap domestic gas. Subsequently, DoF agreed to release the subsidy against bank guarantee of Rs. 310.52 crores pending final decision with regard to undue gain.

 

The Ministry of Chemical and Fertilisers had 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 Delhi High Court asking for release of bank guarantee. Delhi High Court accepted the petition of STL on 3rd December, 2020 and directed to release the bank guarantee which was pronounced in the open court.