Essar Energy to ask for review of court decision

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Essar Energy to ask for review of court decision

Essar Energy says it is examining all legal options and it expects to file a review petition in the Supreme Court.

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Essar Energy says it is examining all legal options and it expects to file a review petition in the Supreme Court.

Shares of Essar Oil plunged over 10% following news that the Supreme Court (SC) has directed the company to pay up Rs 6,309 crore in sales tax to Gujarat government after it lost a case seeking benefit of a government exemption scheme.

The company's management in a press conference says any repayment schedule for sales tax is expected to be agreed upon with the state Government of Gujarat.

The case dates back to 2008 when the Congress party charged the Narendra Modi government for giving a tax benefit of 125% to Essar Oil under a New Capital Incentive Policy Scheme of the state which was operational in the 1995-2000 period

The company adds that the SC verdict is only a sales tax deferment and not exemption. It says no 'event of default' under financial agreements. It expects process of exiting CDR to be completed shortly.