SC order to add Rs979 crore to Indian Oil's Q3 losses

The Supreme Court order on Indian Oil Corporation (IOC) to deposit Rs979 crore in unpaid entry tax to Uttar Pradesh before 14 February would put a severe strain on the cash-strapped refiner.

In a filing with the Bombay Stock Exchange (BSE), the state-run refiner said the SC order would further add to its losses when it announces its third quarter results this month.

The Supreme Court on Wednesday ruled that Indian Oil Corp must pay entry tax on the crude oil it supplies to its Mathura refinery in Uttar Pradesh as per the Allahabad High Court order.

The SC also asked IOC to deposit half of the amount in cash in the next two weeks. 

IOC said in its filing that the court order would have "financial implications". It did not say when the court passed the order.

The Allahabad High Court had ruled that IOC would have to pay over Rs979 crore to the Uttar Pradesh government in entry tax for transporting crude to its Mathura refinery in that state.