BHEL share price in focus on legal suit against Karnataka Power Corporation

Bharat Heavy Electricals Limited (BHEL), a prominent Indian public sector enterprise, has issued multiple regulatory announcements that has kept the BHEL share price in focus. These disclosures cover legal proceedings, tax assessment, board restructuring, and procedural updates in accordance with SEBI listing norms. Here’s a summary of the key developments:

Legal Suit Against Karnataka Power Corporation

BHEL disclosed that it had filed a legal suit against Karnataka Power Corporation Ltd. (KPCL). The suit, filed before the City Civil and Sessions Court in Bengaluru, seeks recovery of dues linked to an Engineering, Procurement, and Construction (EPC) contract for the Bellary Thermal Power Station.

• Amount Claimed: ₹542.14 crore

• Nature of Dispute: Recovery of pending contractual payments from KPCL under the EPC agreement.

Appointment of 2 Independent Directors

BHEL announced the appointment of 2 new Independent Directors to its Board effective from March 29, 2025, for a period of one year or until further orders:

1. Shri Ashok Aseri

   • Background: Engineering graduate with an MBA in Human Resources.
     
   • Experience: Over 27 years in public administration and consultancy.
     
   • Prior Role: Independent Director at STC India Ltd.
     
   • Known for: Leadership in implementing welfare schemes and a strong focus on socio-economic development.

2. Shri Aashish Chaturvedi

   • Background: B.Tech. in Textile Technology from IIT Delhi.
     
   • Experience: Spanning software programming, education, textiles, and industrial real estate.
     
   • Prior Role: Independent Director at Bridge & Roof Company (India) Ltd.
     
   • Current Role: Also a columnist and active in agriculture and other diversified sectors.

Both directors have affirmed that they are not debarred from holding the position by any regulatory authority.

GST Demand Raised by Telangana Authorities

On March 29, 2025, BHEL informed the stock exchanges that it had received an order under Section 73 of the CGST Act, 2017, from the Telangana GST authorities. The order pertains to the financial year 2020-21.

• Demand Details:
  • GST Amount: ₹10.76 crore
    
  • Interest: ₹7.75 crore
    
  • Penalty: ₹1.07 crore
    
  • Total demand: ₹19.58 crore

• Reason: The demand was raised due to a mismatch of GST credit between BHEL’s claims and the GST portal’s records.

• Company Response: BHEL has stated its intent to appeal the order before the Commissioner (Appeals). The company further clarified that the notice does not have any material impact on its financials, operations, or other activities.

Share Price Movement of BHEL

At 3:06 PM, BHEL’s share price was trading 2.23% lower at ₹211.61.

Conclusion

Through this series of announcements, BHEL has maintained compliance with SEBI’s disclosure norms, ensuring transparency in legal, financial, and governance-related developments. While the GST order and legal claim may require further resolution, the appointments and procedural updates highlight BHEL’s continued commitment to strong corporate governance practices.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.