Lemon Tree Hotels Limited has informed the Exchange about Action(s) taken or orders passed
LEMONTREE · price
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Lemon Tree Hotels and three of its subsidiaries have received various notices, challans, and orders from regulatory authorities. The parent company got an ESIC notice for Rs. 557 (negligible). Its material subsidiary Fleur Hotels received a GST order demanding about Rs. 4.07 crore in tax under Section 74(9) plus Rs. 17.6 lakh under Section 74A(6), with equal amounts as penalty and interest for FY2019-20 to FY2024-25; the company says the demand is not maintainable and plans to appeal. Fleur Hotels also got a Rs. 1 lakh groundwater compliance penalty. Iora Hotels received a Rs. 2.5 lakh groundwater challan, and Inovoa Hotels got a Rs. 12,000 excise notice. The company states there is no material financial impact beyond these specific amounts.
The GST demand of around Rs. 4 crore plus penalty and interest on Fleur Hotels is the most notable item, but the company is contesting it through appeal. Shareholders should monitor the appeal outcome, though the aggregate amount is small relative to Lemon Tree's overall operations and is not expected to materially affect financials.