Kalpataru Projects International has received partial relief in a Goods and Services Tax (GST) dispute, with the Appellate Authority reducing the penalty to Rs. 56.63 lakhs following an appeal filed by the company. The Appellate Authority's order was received by the company on 11th May, 2026 at about 02.00 P.M. (IST). The development was disclosed to the stock exchanges on 12th May, 2026 under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Background of the GST Dispute

The matter originates from an order issued by the GST Authority on 27th December, 2024, under Section 74 of the Central Goods and Services Tax Act, 2017, read with relevant provisions of the State Goods and Services Tax Act, 2017. The authority had demanded tax, interest, and penalty covering the financial years 2017-18 to 2021-22. The key details of the original order are summarised below:

At the time of the original order, the company had stated that the order was issued without considering its submissions, and that the matter also pertained to interpretation of law under the Act. The company had further noted that the penalty did not have any significant impact on its financial or operational activities.

Appellate Authority Grants Partial Relief

Following the company's appeal before the Appellate Authority, the authority has partially allowed the appeal, resulting in a reduction of both the tax and interest demand as well as the penalty. The revised penalty now stands at Rs. 56.63 lakhs, compared to the original demand of INR 2.64 Crores.

Company's Position and Next Steps

Kalpataru Projects International has indicated that the Appellate Authority's order was issued in partial consideration of the reply and documentary evidences submitted by the company. The company has stated that it has a strong case to defend the matter before the higher appellate authority and intends to file a further appeal against the said order within prescribed timelines. The disclosure was signed by Shweta Girotra, Company Secretary, on behalf of Kalpataru Projects International Limited.

Kalpataru Projects International Limited has published a newspaper advertisement dated 8th May, 2026, notifying shareholders of the impending transfer of equity shares to the Investor Education and Protection Fund (IEPF) Authority. The notice has been published pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and in compliance with the IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. The advertisement appeared in the Economic Times (English) and Jai Hind (Gujarati) on 8th May, 2026.

Background and Regulatory Basis

Under the provisions of the IEPF Rules, all shares in respect of which dividends have not been paid or claimed by shareholders for seven consecutive years or more are required to be transferred to the IEPF Authority. The company has stated that it has already transferred, on respective due dates, all shares for which dividends had remained unpaid or unclaimed for seven or more consecutive years up to and including financial year 2017-18.

Shareholders Affected

The notice specifically covers shareholders of Kalpataru Projects International Limited as well as shareholders of erstwhile JMC Projects (India) Limited, which has since been amalgamated with the company. The company has sent individual communications to all concerned shareholders at their available addresses, urging them to take appropriate action before the deadline. Full details of affected shareholders and shares due for transfer have also been uploaded to the company's website.

Key Actions Required by Shareholders

Shareholders are advised to take note of the following:

• Shareholders holding shares in physical form whose shares are liable for transfer will have new share certificates issued in lieu of their original certificates for the purpose of dematerialisation and transfer to the IEPF Authority. Upon issue of new certificates, the original share certificates will stand automatically cancelled and be deemed non-negotiable.
• Shareholders holding shares in demat form will have their demat accounts debited for the shares liable to be transferred to the IEPF Authority.
• Both unclaimed dividends and transferred shares, including all benefits accruing on such shares, can be claimed from the IEPF Authority by following the prescribed procedure under the IEPF Rules.
• Shareholders who do not communicate with the company or its Registrar and Transfer Agent by 29th August, 2026 will have their shares dematerialised and transferred to the IEPF Authority by way of corporate action.

Contact Details for Shareholder Queries

Shareholders seeking clarification or wishing to claim unpaid or unclaimed dividends may contact the company's Registrar and Transfer Agent:

The notice has been signed by Shweta Girotra, Company Secretary and Nodal Officer, on behalf of Kalpataru Projects International Limited, dated 7th May, 2026, from Mumbai.