Aditya Birla Lifestyle Brands Limited has received a substantial tax demand order from the Additional Commissioner of Central Tax, Bangalore-East Commissionerate, totaling ₹310.13 crore. The company disclosed this development to stock exchanges on March 31, 2026, in compliance with SEBI listing regulations.

Tax Demand Breakdown

The order, dated March 30, 2026, imposes a comprehensive demand structure across multiple components:

The penalty component constitutes the largest portion of the demand, representing approximately 73% of the total amount sought by the tax authorities.

Nature of Alleged Violations

The demand order stems from audit proceedings that identified multiple GST compliance issues spanning from FY 2019-20 to FY 2022-23. The alleged violations include:

• Irregular availment of Input Tax Credit (ITC)
• Interest on reversal of ITC
• Interest on delayed upload of output liability
• Ineligible credit note availment
• Blocked ITC availment
• Wrongly availed ISD (Input Service Distributor) ITC
• Non-payment of GST on ISD invoices

Corporate Structure Context

An important aspect of this case is that while the order was issued in the name of Aditya Birla Fashion and Retail Limited (ABFRL), it relates to business operations that were subsequently demerged to form the current company. This demerger became effective on May 1, 2025, pursuant to a Scheme of Arrangement, transferring the relevant business activities to Aditya Birla Lifestyle Brands Limited.

Company's Response and Impact Assessment

The company has stated that there is no impact on its financials, operations, or other activities resulting from this order. Management believes the demand is not legally tenable and has expressed its intention to file a suitable appeal before the Appellate Authority.

Regulatory Compliance

The disclosure was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, and in accordance with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The communication was signed by Sonia Bhandari, Interim Company Secretary & Compliance Officer, and submitted to both BSE Limited and the National Stock Exchange of India Limited.

Aditya Birla Lifestyle Brands Limited has officially announced significant changes to its key managerial personnel structure, with the Board of Directors approving a transition in the Company Secretary and Compliance Officer position during a meeting held on March 24, 2026.

Board Meeting Outcome

The Board of Directors, acting on recommendations from the Nomination and Remuneration Committee, approved a seamless transition in the company's corporate governance leadership. The meeting was conducted on March 24, 2026, and addressed both cessation and appointment of key personnel in critical compliance roles.

Leadership Transition Details

Ms. Sonia Bhandari (Membership No.: A20650) will cease her role as Interim Company Secretary and Compliance Officer with effect from the closure of business hours on April 19, 2026. Her cessation also includes her positions as Key Managerial Personnel and Senior Management Personnel.

Mr. Rameez Shaikh (Membership No.: A24939) has been appointed as the new Company Secretary and Compliance Officer effective April 20, 2026. His appointment encompasses multiple key roles within the organization's governance structure.

Professional Background

Mr. Rameez Shaikh brings extensive experience to his new role, with over 16 years of expertise across corporate secretarial, legal, and compliance functions. He currently serves as Company Secretary & Head – Legal at Safari Industries India Ltd., a position he has held since February 2018.

Key Professional Achievements:

• Led Safari Industries India Ltd.'s listing on the NSE
• Executed private placement fund-raising initiatives
• Implemented ESOP/ESAR frameworks
• Previous experience with Raymond Limited and Cipla

Educational Qualifications:

• Company Secretary certification from the Institute of Company Secretaries of India
• Master's degree in Business Law from National Law School of India University, Bengaluru
• LLB from New Law College, Mumbai

Regulatory Compliance

The Board has authorized Mr. Shaikh to determine materiality of events and information, and to make necessary disclosures to stock exchanges under Regulation 30 of the SEBI Listing Regulations. This authorization takes effect from April 20, 2026, alongside other Key Managerial Personnel of the company.

The announcement confirms that Mr. Rameez Shaikh is not related to any Director of the company, ensuring independence in his corporate governance role. All changes have been communicated to both BSE Limited and National Stock Exchange of India Limited in compliance with regulatory requirements under the SEBI Master Circular.