Vraj Iron and Steel Limited, a prominent player in the iron and steel sector, has responded to a water charges demand and associated penalty imposed by the Sub Divisional Officer (SDO), Water Resources Sub Division, Bilaspur, Chhattisgarh. This disclosure was made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and shared with both the BSE and NSE.

Details of the Water Charges Dispute

On April 29, 2025, Vraj Iron and Steel received a letter from the SDO Water Resources demanding payment of Rs. 27,28,166 for water charges used by the company. This charge included a penalty for the non-execution of an agreement between the company and the water authority regarding the extraction of ground water for industrial purposes. The authority charged the company for withdrawing groundwater without the proper agreement in place.

In its response, Vraj Iron and Steel acknowledged the receipt of the letter but disputed the demand for penalty. The company maintained that it had already obtained an NOC (No Objection Certificate) from the Central Ground Water Board (CGWB) of New Delhi for its groundwater extraction, which it believes should render the penalty invalid. Consequently, Vraj Iron and Steel filed a representation requesting the waiver of the penalty and the execution of the agreement.

Impact on the Company’s Operations and Financials

The company further clarified that despite the demand for payment of water charges and penalty, there has been no material impact on its financials, operations, or other activities. Vraj Iron and Steel emphasized that it does not consider the demand payable, given the validity of the NOC provided by the CGWB. The company assured stakeholders that it believes the matter will be resolved in due course without any significant financial consequences.

Annexure A: Disclosure Details

In line with SEBI Regulations, Vraj Iron and Steel provided the following details in Annexure A:

1. Authority Involved: Sub Divisional Officer, Water Resources Sub Division, Bilaspur, Chhattisgarh.

2. Action Taken: The company received a demand for Rs. 27,28,166 towards water charges and penalty for non-execution of the groundwater extraction agreement.

3. Date of Receipt: The letter was received on April 29, 2025.

4. Violation Alleged: The company was charged for groundwater extraction without the execution of a formal agreement.

5. Financial Impact: There is no material financial impact on the company’s operations or activities, as Vraj Iron and Steel believes the charges are not payable.

Key Takeaways from Vraj Iron and Steel's Disclosure

1. Water Charges Demand: The company has received a water charges demand from the SDO, Bilaspur, amounting to Rs. 27,28,166, but disputes the accompanying penalty.

2. NOC and Representation: Vraj Iron and Steel has obtained an NOC from the CGWB for groundwater extraction and has filed a representation for the penalty waiver.

3. No Material Impact: The company asserts that the demand will not significantly affect its financials or operations, as the charges are not considered payable.

Company Overview

Vraj Iron and Steel Limited is engaged in the manufacturing and supply of iron and steel products. The company, formerly known as Vraj Iron and Steel Pvt. Ltd. and Phil Ispat Private Limited, operates in the industrial sector and has a significant presence in Chhattisgarh, where its manufacturing plants are located. Vraj Iron and Steel is known for producing high-quality iron and steel products for various industrial applications.

The company’s facilities, including the plant located in Dighora, near Bitha Mode, Raipur, produce a wide range of steel products, serving a diverse set of clients across the region. Vraj Iron and Steel's commitment to operational excellence and environmental compliance ensures its position as a leading entity in the iron and steel industry.

Conclusion

Vraj Iron and Steel Limited has taken proactive steps to address the water charges demand and penalty issued by the Sub Divisional Officer, Bilaspur. The company firmly believes that the demand is not payable due to the NOC from the Central Ground Water Board and has filed a representation for the waiver of the penalty. There is no material financial impact on the company’s operations, and it remains committed to resolving the issue through proper channels.

Stakeholders can be assured that Vraj Iron and Steel continues to comply with all necessary regulatory frameworks and operates with due diligence and transparency in addressing such matters.

The Upcoming IPOs in this week and coming weeks are  Wagons Learning, Srigee DLM, Manoj Jewellers.

The Current active IPO are Kenrik Industries,Arunaya Organics, Ather Energy, Iware Supplychain Services.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.