Manoj Vaibhav Gems N Jewellers Limited has received an order from the Office of the Principal Commissioner of Central Tax, Visakhapatnam, demanding a total of Rs 5.84 Cr including penalty regarding the availment and utilization of Input Tax Credit (ITC) on Initial Public Offer (IPO) expenses. The order, received on June 22, 2026, alleges irregularities in treating ITC accrued on IPO expenses as an exempt supply transaction in securities under Section 17(3) of the CGST Act, 2017. The total monetary impact confirmed in the order is Rs 5,84,20,920, comprising a cumulative tax demand of Rs 2,92,10,460 and an equivalent cumulative penalty of Rs 2,92,10,460 along with applicable interest.

The tax demand has been confirmed for two distinct periods. For FY 2021-22 to FY 2023-24, the order confirms a tax demand of Rs 2,84,97,628 and an equivalent penalty of Rs 2,84,97,628 under Section 74(1) of the CGST Act, 2017. This amount includes components of IGST, CGST, and SGST. Additionally, for FY 2024-25, a tax demand of Rs 7,12,832 and an equivalent penalty of Rs 7,12,832 were confirmed under Section 74A of the CGST Act, 2017.

Breakdown of Tax Demand

The alleged violation pertains to the period from December 2021 to March 2025, involving an ITC amount of Rs 2,92,10,460. The company stated that there is no impact on the operational activities of the listed entity. Management is evaluating the order and intends to file an appeal before the ADC Appeals, Central Tax, Guntur within the prescribed statutory timelines.

Promoter Bharata Mallika Ratna Kumari Grandhi has declared that the promoter and promoter group of Manoj Vaibhav Gems 'N' Jewellers Limited hold no encumbrance on 3,62,80,000 equity shares as on March 31, 2026. The disclosure confirms that no shares have been pledged or otherwise encumbered directly or indirectly during the financial year ended March 31, 2026, other than those previously disclosed. This filing is significant as it assures investors of the unencumbered status of the majority shareholding, which constitutes 74.27% of the company's equity.

The declaration was submitted to BSE Limited and National Stock Exchange of India Limited in compliance with Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The regulation mandates promoters to disclose any encumbrance on shares held by them or persons acting in concert. The filing confirms that the promoter group has adhered to these disclosure requirements.

Shareholding Details

The breakdown of the promoter and promoter group shareholding, as detailed in the filing, is provided below. The table lists the number of shares held by each entity and confirms that zero shares are encumbered across the group.

The largest shareholder within the promoter group is Grandhi Bharata Mallika Ratna Kumari HUF, holding 54.35% of the total equity shares. Manoj Kumar G. Enterprises Private Limited, formerly known as Harshil Enterprises (India) Private Limited, holds 8.72% of the shares. The declaration was signed by Bharata Mallika Ratna Kumari Grandhi on April 06, 2026.