Kalpataru Properties (Thane) Ltd, a wholly owned subsidiary of kalpataru , filed appeals with the GST Appellate Tribunal on June 17, 2026, challenging tax demands totaling Rs 443.18 lacs for FY 2017-18. The appeals address orders passed by the Deputy Commissioner of State Tax on January 30, 2026, and the Additional Commissioner on August 18, 2025. The demands relate to the alleged wrongful availment of transitional credit on inputs used in the construction of immovable property by Arimas Developers Private Ltd, which has since merged with the subsidiary.

The orders specifically demanded GST of Rs 396.49 lacs and Rs 46.69 lacs. The subsidiary has expressed hope for a favorable outcome from the tribunal proceedings. The disclosure was made to the National Stock Exchange of India Limited and BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Details of Tax Demands

The appeals concern the period FY 2017-18 and involve Arimas Developers Private Ltd, an entity merged with Kalpataru Properties (Thane) Ltd. The dispute centers on the classification of inputs contained in semi-finished goods used for construction.

Kalpataru Limited has withdrawn the Scheme of Arrangement for the demerger of Project Magnus from its wholly owned subsidiary, Kalpataru Properties Limited. The Executive Committee of the Board approved the withdrawal on June 2, 2026, after determining that the benefit envisaged from the scheme is no longer relevant. The company stated that this withdrawal has no financial impact on Kalpataru Limited or Kalpataru Properties Limited.

The Board of Directors had initially approved the demerger on January 22, 2024. The scheme involved the transfer of the Demerged Undertaking, specifically Project Magnus situated at Bandra East, Mumbai, from Kalpataru Properties Limited to Kalpataru Limited. The arrangement was to be executed on a going concern basis, with the Appointed Date set as April 1, 2024, subject to approval by the Hon'ble National Company Law Tribunal, Mumbai.

Following the board's approval, the scheme was filed with the Hon'ble National Company Law Tribunal, Mumbai on September 30, 2024. The proposed arrangement was structured under Sections 230 to 232 of the Companies Act, 2013. The Executive Committee utilized the authority granted by the Board to review and subsequently withdraw the filing.

Key Details of the Withdrawn Scheme

The decision to withdraw was taken during the Executive Committee meeting held on June 2, 2026, which concluded at 06:30 p.m. The information has been disseminated on the company's official website.