This is in continuation to the letter bearing no. CFCL/SE/2023-24/56 dated March 13, 2024 on the above subject, disclosing the filing of a Writ Petition by The Fertiliser Association of India (FAI) and other fertiliser companies including Chambal Fertilisers and Chemicals Limited ("Company"), before the Hon'ble Delhi High Court praying, inter-alia, for quashing the guidelines for evaluation of reasonableness of MRPs of P&K Fertilisers under the NBS Scheme vide Office Memorandum No. 23011/1/2018-MPR dated November 15, 2019 ("Reasonability Guidelines").

The company informed that Hon'ble Delhi High Court vide its Order dated May 28, 2024, which was received by Company on May 31, 2024, has restrained Union of India [including Ministry of Chemicals & Fertilizers, Department of Fertilizers and Fertilizer Industry Coordination Committee] from taking any coercive action against the Petitioners [i.e. Petitioners in W.P. (C) No. 3855 of 2024] including the Company, for recovery of amount in terms of the Reasonability Guidelines. Further, the Company has received an Order dated May 28, 2024 (issued on May 30, 2024 and received by Company on May 31, 2024) of Director, Ministry of Chemicals & Fertilizers, Department of Fertilizers, Government of India ("DOF") under Section 3 of the Essential Commodities Act, 1955 read with Section 25(1) of the Fertiliser Control Order, 1985, for provisional recovery of INR 1,406,536,491.72 on account of unreasonable profit for the year 2020-21 in terms of the Reasonability Guidelines.

The Company has informed DOF regarding the order of Hon'ble Delhi High Court dated May 31, 2024 and requested DOF not to act upon its aforesaid Order dated May 31, 2024 towards provisional recovery.