DCW Ltd contests Port Authority's interest and GST demand over lease rent
DCW Ltd is contesting a significant demand from the Estate Management Division of V. O. Chidambaranar Port Authority regarding interest and Goods and Services Tax (GST) on lease rent, arguing that the charge violates terms set by the Hon'ble Madras High Court.The dispute centers around the revision of lease rent paid by DCW Ltd to the port authority. The company has received a demand notice from the Estate Management Division of V. O. Chidambaranar Port Authority (Ministry of Ports, Shipping & Waterways, Govt. of India), Tuticorin District. This communication was dated June 11, 2026, and was received by DCW Ltd on June 16, 2026.
According to the demand letter, the port authority is claiming interest amounting to <5,35,56,890/- along with GST thereon, totaling ~6,31,97,130/-. This amount is sought in addition to the determined lease rent of ~3,64,01,370/- (inclusive of GST) for the period from 2014 onwards up to April 30, 2026.
DCW Ltd stated that this demand for interest and GST thereon is wholly unauthorised and untenable, directly contradicting the terms established by the Hon'ble Madras High Court.
Dispute background and court order
The litigation stems from a Writ Petition filed by DCW Limited before the Hon'ble Madras High Court (Writ Petition No. 20431 of 2014), challenging the revision in lease rent payable for periods ranging from 2007 to 2014 and subsequent years.The Hon'ble High Court passed an Order on November 6, 2025. This order directed DCW Ltd to pay the lease rent for the period 2007 to 2014, which amounted to ~49,67,725/- plus applicable GST, to be paid in 24 equated monthly instalments. The court also stipulated that the lease rent payable for the period from 2014 onwards would be determined by the Port Authority and communicated to DCW Ltd.
Basis of contestation
DCW Ltd emphasized that the November 6, 2025, Order issued by the Hon'ble Madras High Court did not contain any direction or reservation permitting the Port Authority to levy or recover interest pertaining to the aforesaid period.The company has assessed that the demand for interest and GST is inconsistent with the express terms of the court order dated November 6, 2025. Consequently, DCW Ltd intends to contest the said demand by submitting an appropriate representation to the concerned Port Authority, reserving all its available rights and remedies under law.
The key details regarding the dispute are summarized below:
| Opposing Party | Primary Stakeholder | Court/Agency Where Litigation is Filed |
|---|---|---|
| Union of India, New Delhi | Tariff Authority for Major Ports (TAMP) with Director, Adjudicatory Board For Major Ports, Ministry Of Ports, Shipping And Waterways, Government Of India, Mumbai. | The company filed a Writ Petition before the Hon'ble Madras High Court. |
| Estate Management Division of V. O. Chidambaranar Port Authority (Ministry of Ports, Shipping & Waterways, Govt. of India), Tuticorin District. | Date of Demand Letter: June 11, 2026. |
The financial implications related to the demand are detailed as follows:
| Financial Component | Amount / Figure |
|---|---|
| Total Interest and GST demanded by Port Authority | ~6,31,97,130/- |
| Lease Rent determined for 2014 onwards (inclusive of GST) up to April 30, 2026 | ~3,64,01,370/- |
DCW Stock Price Movement
Today, the stock of DCW Limited rallied, settling at ₹50.36 after gaining 1.27%. The movement occurred amid trading volume totaling 5.18 million shares during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.