Sri Lotus Developers and Realty Limited has informed the Exchange about General Updates
LOTUSDEV · price
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Sri Lotus Developers and Realty Limited has disclosed that Veer Savarkar Projects Private Limited, a company merged into it via Regional Director order dated October 30, 2024, has received Show Cause Notices from the Office of Assistant Commissioner of State Tax, Mumbai. The notices under Section 74(1) of CGST and MGST Act cover alleged GST liability including tax, interest and penalty for three financial years. The largest exposure is for FY 2021-22 with CGST/SGST tax demand of Rs 1.79 crore each, plus similar interest and penalty amounts. The company has already paid the tax components under protest and denies any liability or violation. It plans to submit a response contesting the allegations before the prescribed deadline.
While the company claims no material financial impact, the FY 2021-22 demand of approximately Rs 10 crore in total (tax, interest and penalty combined) is significant. Shareholders should monitor for any adverse orders, as GST disputes can escalate to penalties and prosecution under Section 122 of the CGST Act.