Maruti Suzuki India Limited received a penalty order of ₹149.64 million from the Income Tax Authority on September 29, 2026. The order relates to fiscal year 2022-23 assessments involving its subsidiary, Suzuki Motor Gujarat Private Limited.

The penalty was imposed under Section 270A of the Income-tax Act, 1961. It stems from certain additions and disallowances sustained in the Final Assessment Order, which are currently subjudice before appellate authorities. Maruti Suzuki stated that it will file an appeal against the said penalty order.

Regulatory Disclosure and Context

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notice highlighted that Suzuki Motor Gujarat Private Limited has now been amalgamated into and with Maruti Suzuki India Limited. Consequently, the liability associated with the subsidiary's past tax assessments falls under the consolidated entity's purview.

Impact on Operations

Maruti Suzuki asserted that there is no major impact on the financial, operational, or other activities of the company due to this penalty order. The company maintains that the underlying additions and disallowances are being contested in appellate forums. The decision to appeal indicates the company's intent to challenge the assessment rather than accept the liability as final.

Maruti Suzuki India Limited announced the resignation of Kazunari Yamaguchi from the post of Whole-time Director designated as Director (Production), effective close of business hours on September 30, 2026. The move follows the withdrawal of his nomination by Suzuki Motor Corporation, Japan.

Yamaguchi will continue to serve as a Non-executive Director of the company. He also stepped down as a member of the Risk Management Committee with the same effect. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Leadership transition in production

Concurrently, the Board of Directors appointed Sarada Prasana Nayak as Senior Management Personnel (SMP) designated as Head (Production and Production Engineering). His appointment is effective October 1, 2026, under existing full-time employment terms.

Nayak brings over 30 years of experience in planning large-scale CAPEX programs and leading teams to set up greenfield and brownfield projects from concept to commissioning. His role involves strategizing capacity expansion, lean multi-location plant operations, smart factory initiatives, and sustainable operations.

Profile of incoming head

Nayak is an alumnus of Utkal University and Ravenshaw College, Odisha. His expertise includes localization, supplier development, introduction of new technologies, and carbon-neutral initiatives within the manufacturing domain.

Governance implications

The resignation marks a shift in the executive leadership structure for the production division while maintaining continuity through Yamaguchi’s retention as a Non-executive Director. This ensures that strategic oversight remains connected to the parent entity, Suzuki Motor Corporation, despite the change in operational leadership.