Nu Vista, a wholly owned subsidiary of cement manufacturer Nuvoco Vistas Corp, has filed a writ petition before Calcutta High Court challenging the constitutional validity of the ‘Revocation Act’ passed by the Bengal government to rescind pending fiscal incentives promised to industries.
The company said the legal opinion obtained by it and its subsidiary stated that there is sufficient legal grounds to challenge the ‘Revocation Act’ by way of a writ petition under Article 226 of the Constitution of India on the grounds of unconstitutionality, arbitrariness and unreasonableness.
In a letter to the bourses, Nuvoco Vistas, which is promoted by Gujarat-based Nirma group, said the company believed, based on the advice of the legal counsel, that it has a good case in the writ petition.
Nuvoco Vistas and its subsidiary operate a cement plant in Mejia (Bankura) and Panagarh (Burdwan). Nuvoco had acquired these units from Lafarge and Emami Cement over the last decade.
The legal challenge follows the promulgation of The Revocation of West Bengal Incentive Schemes and Obligations in the Nature of Grants & Incentives Act, 2025. It was passed by the Bengal Assembly in March and has now come into effect. The Telegraph had reported earlier this week that a number of companies affected by the Act are planning to move court.
Legal sources said that at least two more prominent cement makers, which have a presence in Bengal, will move court next week, with one of them opting to approach the Supreme Court by invoking Article 32 of the Constitution, which allows directly approaching the apex court for enforcement of fundamental rights.
The stated objective of the Act is to make state finances available for various social welfare schemes which are intended for the socio economically disadvantaged and marginalised sections of the state.
Nuvoco on Friday said that incentives of ₹427.14 crore and ₹300.44 crore that were to come to NU Vista, respectively, are likely to be impacted. However, Nuvoco and NU Vista carry the provision for expected credit loss of ₹238.22 crore and ₹167.58 crore, respectively.
