Mumbai, January 31, 2025 – Larsen & Toubro Limited (NSE: LT, BSE: 500510) announced today that the Court of Appeal, State of Qatar, has ruled in favor of the company, annulling financial penalties and tax demands totaling QAR 104,502,976 (~INR 239 crore) that were previously imposed by Qatar's General Tax Authority.
Background on the Case
Larsen & Toubro (L&T) had disclosed on November 17, 2023, that the Qatari tax authority had arbitrarily levied financial penalties related to the financial years 2016-17 and 2017-18. The company had appealed against these penalties, contending that they were unjustified and contrary to law.Court of Appeal Decision
In a significant legal victory for L&T, the Court of Appeal, State of Qatar, issued an order on January 29, 2025, completely annulling the penalties and associated tax demands. The ruling was based on the court's determination that the penalties were arbitrary and unlawful.Company's Statement
L&T confirmed that the decision was conveyed to the Company Secretary and Compliance Officer on January 30, 2025. The company has now formally disclosed the outcome under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.Impact and Outlook
This favorable ruling removes a significant financial liability for L&T and reinforces the company’s legal stance in international jurisdictions. Investors may view this as a positive development, reducing regulatory uncertainties for L&T's operations in Qatar.L&T is expected to provide further commentary on the ruling during its next investor update.