Nectar Lifesciences Limited has informed stock exchanges about a material litigation development involving a civil writ petition filed by the Principal Commissioner of CGST Commissionerate, Ludhiana. The petition challenges a favorable appellate order that significantly reduced the company's tax liability.

Background of the Tax Matter

The development stems from an earlier appellate order dated May 27, 2025, issued by the Commissioner (Appeal). This order had provided substantial relief to Nectar Lifesciences by dropping a major portion of the tax demand while confirming only a minimal liability.

CGST Authority's Challenge

The Principal Commissioner of CGST Commissionerate, Ludhiana has now filed a civil writ petition with the Hon'ble High Court of Punjab and Haryana, seeking to overturn the appellate decision. The petition requests the court to:

• Quash and set aside the appellate order dated May 27, 2025
• Restore the original order that was quashed by the appellate authority
• Grant interim stay on the operation of the appellate order

Potential Financial Impact

If the High Court allows the writ petition in full, Nectar Lifesciences could face significant financial exposure. The company has disclosed that it may be required to pay the ₹89.32 crore demand along with applicable interest and penalties, plus the ₹6.24 crore demand that was remanded.

Company's Response Strategy

Nectar Lifesciences has stated that it strongly contests the contentions raised in the writ petition and will file an appropriate response before the Hon'ble High Court. The company has also reserved its right to prefer an appeal before the Hon'ble Supreme Court if required, indicating its intention to pursue all available legal remedies.

Next Steps

The matter has been scheduled for hearing on April 28, 2026, before the Hon'ble High Court of Punjab and Haryana. The outcome of this hearing will determine whether the favorable appellate order remains intact or if the company faces renewed tax liability exposure.

Nectar Lifesciences Limited has successfully concluded its postal ballot process, with shareholders approving three critical corporate governance resolutions. The company declared the results on March 01, 2026, following the completion of electronic voting on February 28, 2026.

Postal Ballot Results Overview

The postal ballot process covered three resolutions, with shareholders demonstrating strong support across all proposals. The voting was conducted entirely through electronic means, in compliance with regulatory requirements and MCA circulars.

Director Appointment Details

Shareholders approved the appointment of Mr. Sushil Kapoor (DIN: 00063525) in dual capacity. The first resolution appointed him as a Director liable to retire by rotation, while the second resolution designated him as Wholetime Director (Finance) for a three-year term effective December 04, 2025.

Remuneration Structure

The approved compensation package for Mr. Kapoor includes:

Voting Participation Analysis

The postal ballot witnessed significant participation from different shareholder categories. Out of total outstanding shares of 194260970, a total of 101808160 shares participated in the voting process, representing 52.41% participation.

Corporate Governance Process

The postal ballot process was conducted in strict compliance with the Companies Act, 2013, and SEBI regulations. Mr. Prince Chadha (ACS 32856) served as the scrutinizer for the electronic voting process. The company utilized the services of Kfin Technologies Limited as the Registrar and Share Transfer Agent for facilitating remote e-voting.

The voting period extended from 9:00 A.M. on January 30, 2026, to 5:00 P.M. on February 28, 2026. Electronic copies of the postal ballot notice were distributed on January 28, 2026, to shareholders whose email addresses were registered with the company or depositories.

MOA Amendments

The third resolution involved adopting a new set of Memorandum of Association with amended object clauses. This special resolution received approval from 99.08% of the votes polled, enabling the company to expand its business objectives through additional sub-clauses in the main object clause.

All resolutions were declared passed with the requisite majority, and the results have been communicated to stock exchanges where the company's shares are listed. The formal documentation was completed at the company's registered office in Dera Bassi, Punjab, on March 13, 2026.