In Brief
Ultratech Cement challenged the State of Rajasthan's decision to revise and recover excess subsidy granted under the Rajasthan Investment Promotion Scheme, 2003. The State's initial committee had awarded 25% extra subsidy in error. The Court held that administrative authorities can revise erroneous decisions without being bound by estoppel or contemporaneous interpretation doctrines. However, since there was no breach of scheme conditions, recovery interest should apply at the agreed contractual rate rather than the statutory 18% penalty rate. The appeal was partly allowed, permitting interest recovery from the date excess subsidy was availed until payment, at the agreed-upon rate."
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