Bombay Burmah Trading surges after SC recalls Rs 4,655 crore lease rent observation
The May order had recorded that lease rent of Rs 4,655.24 crore remained to be recovered from BBTCL. The company subsequently challenged the observation, stating that the amount had neither been formally demanded nor finally determined.
The Singampatti tea estate is located in the Manjolai hills of Tamil Nadu's Tirunelveli district, within the Western Ghats. BBTCL held about 8,373.57 acres under a 99-year lease granted by the erstwhile Singampatti zamindar in 1929. The estate included tea plantations and settlements such as Manjolai, Kakkachi, Nalumukku and Oothu.
The land later came under forest protection, with the area falling within the Kalakkad-Mundanthurai Tiger Reserve. BBTCL eventually discontinued plantation and factory operations in June 2024 and completed the handover of the remaining estate land to the Tamil Nadu Forest Department in July 2026.
BBTCL had also pointed out that the civil appeals before the Supreme Court did not concern the lease rent issue. It said the earlier lease rent demands of about Rs 231.9 crore had been quashed by the Madras High Court and remanded for re-quantification after providing the company an opportunity of being heard.
In its latest order, the Supreme Court noted that the Rs 4,655.24 crore amount had neither been the subject of a notice served on BBTCL nor finally determined after giving the company an opportunity of hearing.
The court accordingly recalled the observations in paragraph 59 of its 29 May order to the extent that they referred to BBTCL's lease rent liability.
The latest order does not determine the underlying lease rent dispute. BBTCL said it will continue to take necessary steps in the matter and keep stakeholders informed of material developments.
BBTCL is primarily involved in manufacturing and sale of electric components, tea, dental products, biscuits, other agricultural products, revenue from construction contracts and rental income from horticulture. Other sources of revenue include scrap sales, income from sale of electricity and subsidies from government.
On a consolidated basis, Bombay Burmah Trading Corporation's net profit rose 19.72% to Rs 288.16 crore while net sales rose 9.26% to Rs 5052.15 crore in Q1 June 2026 over Q1 June 2025.
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