JK Paper Limited has disclosed a pending litigation/dispute with the Water Tax Department of Water Resources, Adava, Odisha, regarding a demand for payment of Water tax of Rs. 36.18 crore (excluding penalty and interest) on the companys unit at Rayagada. The company has applied for settlement under the One Time Settlement Scheme (OTS) and expects a lower liability, but has made a full provision as a matter of prudence.