Subsidiary's CBG plant hit as dispute restricts access; ₹18,48,34,643 dues alleged

Dispute at step-down subsidiary Refex CBG Kolhapur.

Tue 6 Oct 2026

Alleged Dues

₹18,48,34,643/-

Dispute Forum

District Civil Court, Kolhapur

Operational Impact

operations at the CBG plant have been severely impacted

What happened

• A dispute has arisen between Warana Sugar Limited and Refex CBG Kolhapur Limited (formerly Spectrum Renewable Energy Private Limited and Refex CBG Kolhapur Private Limited), a step-down subsidiary of the company.
• The dispute concerns the Compressed Bio Gas plant situated at Gat No. 1165, Village Kodoli, Taluka Panhala, District Kolhapur, Maharashtra.
• The plant stands on land owned by Refex CBG Kolhapur, in the vicinity of Warana Sugar's sugar factory, and has been operated under a long-term arrangement between the two entered into in 2010.

Impact on operations

• Access to the plant has been restricted for the personnel of Refex CBG Kolhapur, and the supply of electricity and water to the plant has also been affected.
• The company states that as a result, operations at the CBG plant have been severely impacted.
• Warana Sugar has stated that these measures were undertaken in connection with certain alleged outstanding dues payable by Refex CBG Kolhapur. Refex CBG Kolhapur disputes the said dues.

Legal proceedings

• Refex CBG Kolhapur has initiated legal proceedings and is seeking, among other things, interim reliefs to enable access to the plant and resumption of operations in accordance with due process of law.
• Warana Sugar has also initiated certain legal proceedings against Refex CBG Kolhapur in relation to the plant.
• Refex CBG Kolhapur disputes those proceedings and says it shall contest them in accordance with law.
• The forum is the District Civil Court, Kolhapur.

The amount at the centre

• Warana Sugar has alleged outstanding dues of ₹18,48,34,643/-.
• According to Refex CBG Kolhapur, that amount stood fully and finally settled as part of the acquisition of Refex CBK Kolhapur by Refex Sustainability Solutions Limited, a wholly-owned subsidiary of the company, in August 2025.
• All such claims and demands are denied and disputed by Refex CBG Kolhapur.

Financial impact

• The financial implications, including the impact of cessation of operations of the CBG plant, are not presently quantifiable.
• The company says it is assessing the financial and operational impact and will make further disclosures as may be required under applicable law.

What this means for investors

• The disclosure centres on one step-down subsidiary's plant, whose operations are stated to be severely impacted, and on a disputed claim amount.
• The company states the matter is sub judice and that the disclosure is without prejudice to the rights, contentions and remedies of the company and Refex CBG Kolhapur, without any admission of liability or claim.

Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.