The Delhi High Court on Tuesday ordered the income tax department to refund ₹783 crore to Israeli drugmaker Teva Pharmaceutical Industries Ltd. The refund relates to tax proceedings arising from a nearly nine-year-old dispute over payments linked to the erstwhile Ranbaxy Laboratories, now part of Sun Pharma, according to livemint.com.
The court quashed the tax proceedings against Teva and its US affiliate, bringing relief to the company after a prolonged legal battle. The decision follows detailed arguments and review of the payments made during the acquisition of Ranbaxy by Teva. The ruling was delivered by the Delhi High Court bench, which found the tax department's claims to be unsustainable in this case, as reported by livemint.com.
This ruling is significant in the pharmaceutical sector, where tax disputes over cross-border acquisitions have been common. The refund of ₹783 crore marks one of the larger tax refunds ordered by the Delhi High Court in recent years. Teva Pharmaceutical Industries is Israel’s largest drugmaker and a major player in the global generic drugs market, making this case closely watched by industry participants, according to livemint.com.
The refund order concludes a legal process that began nearly nine years ago, providing financial clarity to Teva Israel. The Delhi High Court’s decision was published on September 15, 2026, and the income tax department is now required to comply with the refund directive, according to livemint.com.