Nectar Lifesciences Limited disclosed on October 3, 2026, that the Hon'ble High Court of Punjab and Haryana remanded a Central Goods and Services Tax (CGST) dispute back to the Appellate Authority for fresh consideration, with a potential financial exposure of up to ₹89.32 crore plus interest and penalties.

Background of the CGST dispute

The Commissioner (Appeal), acting as the Appellate Authority, had passed an order dated May 27, 2025, in a matter involving Nectar Lifesciences. The Appellate Authority's order addressed multiple demands and penalties raised by the Principal Commissioner of CGST Commissionerate, Ludhiana, Punjab. The key outcomes of that appellate order are summarised below.

Writ petition and high court order

Following the Appellate Authority's order, the Principal Commissioner of CGST Commissionerate, Ludhiana, filed a civil writ petition before the Hon'ble High Court of Punjab and Haryana, challenging the appellate order. The writ petition sought, among other reliefs:

• An appropriate writ order quashing and setting aside the impugned order
• Directions restoring the Order-in-Original that was quashed in the impugned order
• An interim stay on the operation of the impugned order

The Hon'ble High Court of Punjab and Haryana, vide its order dated September 24, 2026, remanded the matter back to the Appellate Authority for fresh consideration.

Financial implication for the company

Nectar Lifesciences stated that in the event the Appellate Authority reconsiders the matter, the company may be exposed to the following financial liabilities:

The company noted that the final quantum of liability is presently not ascertainable. Nectar Lifesciences also stated that it reserves the right to prefer an appeal before the Hon'ble Tribunal, if required. The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the related SEBI Master Circular.

Nectar Lifesciences has issued revised proceedings for its 31st annual general meeting (AGM) held on September 18, 2026. The update corrects an inadvertent error regarding the cut-off date for voting eligibility. Shareholders had previously approved the company’s standalone and consolidated financial statements for FY26 during the meeting.

The revised disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary Sanjaymohan Singh Rawat signed the letter dated September 19, 2026, enclosing the corrected proceedings. The original cut-off date for voting eligibility is confirmed as Friday, September 11, 2026.

Voting Results

The Consolidated Scrutinizer's Report confirmed that all five resolutions passed with the requisite majority. A total of 133 members cast their votes through remote e-voting and instant polling during the AGM. The promoter group, holding 100,706,448 shares (51.84% of total shares), voted 100% in favour of all resolutions.

Public institutional investors also voted unanimously in favour of all resolutions. Among public non-institutional investors, support ranged from 46.82% to 77.91% depending on the resolution, though the promoter block ensured passage in all cases.

Audit and Governance

Statutory auditors M/s. Deepak Jindal & Co., Chartered Accountants, and secretarial auditors P. Chadha & Associates expressed an unqualified opinion on the financial year 2025-26 results. No qualifications or adverse comments were noted in the audit reports regarding the company’s functioning or financial statements.

Board Appointments

The following resolutions were passed during the ordinary and special business segments:

Chairman Sanjiv Goyal thanked members for their trust and acknowledged the commitment of the company’s workforce. The meeting concluded at 11:25 am.