Ponni Sugars (Erode) Ltd Receives GST Demand Notice of ₹9.35 Crore for Alleged Tax Credit Violations

Ponni Sugars (Erode) Ltd has received a significant GST demand cum show cause notice from tax authorities, marking a regulatory challenge for the sugar manufacturing company. The notice, received on April 28, 2026, demands ₹9.35 crore along with applicable interest and penalty from the company.

GST Demand Details

The Additional Commissioner of Goods and Services Tax (GST) and Central Excise, Coimbatore has issued the notice alleging specific violations under tax regulations. The demand pertains to alleged contraventions of CGST Act, 2017 and TNGST Act, 2017 provisions.

Parameter:	Details
Exact Demand Amount:	₹9,34,68,218
Notice Date:	April 28, 2026
Receipt Time:	17.06 hrs
Issuing Authority:	Additional Commissioner of GST and Central Excise, Coimbatore
Company Registration:	CIN: L15422TN1996PLC037200

Alleged Violations

The tax authorities have raised concerns regarding two primary areas of non-compliance as detailed in the official disclosure:

Input Tax Credit Issues: Wrong availing of Input Tax Credit on Co-Generation Power Plant and other services
GST Payment Lapses: Non-payment of GST on certain services provided by the company

These allegations suggest potential irregularities in the company's tax compliance procedures related to its power generation facilities and service operations.

Company's Response and Position

Ponni Sugars has maintained a firm stance against the allegations, stating that the demands raised in the show cause notice are not legally tenable. The company has outlined its planned course of action in response to the notice.

Response Strategy:	Details
Legal Position:	Demands not legally tenable
Planned Action:	Appropriate reply to show cause notice
Legal Recourse:	Will take appropriate legal measures as required
Financial Impact Assessment:	May not result in material financial impact

Regulatory Compliance and Disclosure

The company has fulfilled its disclosure obligations under Regulation 30 of SEBI (LODR) Regulations, 2015, by informing the stock exchanges about this development. The disclosure was made to both National Stock Exchange of India Ltd and BSE Ltd on April 29, 2026.

Compliance Details:	Information
Stock Exchange Notification:	NSE and BSE
Disclosure Date:	April 29, 2026
Regulation Reference:	SEBI (LODR) Regulations, 2015
Company Secretary:	R Madhusudhan
Digital Signature Time:	14:10:25 +05'30'

The company secretary R Madhusudhan signed the disclosure document, ensuring compliance with regulatory requirements for material events that could impact investor interests. This transparent approach demonstrates the company's commitment to maintaining proper corporate governance standards despite facing regulatory challenges.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.69%	+0.56%	+13.26%	+0.67%	-5.74%	+82.63%

Ponni sugars erode Limited has submitted its quarterly compliance certificate to stock exchanges, fulfilling mandatory regulatory requirements under SEBI regulations. The certificate pertains to the quarter ended March 31, 2026, and demonstrates the company's adherence to depository and participant regulations.

Regulatory Compliance Filing

The company filed the certificate under Regulation 74(5) of SEBI (Depository and Participants) Regulations, 2018 on April 6, 2026. The submission was made simultaneously to both the National Stock Exchange of India Ltd and BSE Ltd, ensuring compliance across all trading platforms where the company's shares are listed.

Filing Details:	Information
Regulation:	SEBI (Depository and Participants) Regulations, 2018 - Section 74(5)
Quarter Ended:	March 31, 2026
Filing Date:	April 6, 2026
Submitted To:	NSE and BSE
Filed By:	R Madhusudhan, Company Secretary & Compliance Officer

Registrar Confirmation

Cameo Corporate Services Ltd, serving as the company's Registrar and Share Transfer Agent, issued the compliance certificate on April 3, 2026. The registrar confirmed that all securities received from depository participants for dematerialisation during the quarter ended March 31, 2026 were properly processed and confirmed to the depositories.

Dematerialisation Process Compliance

The certificate validates several critical aspects of the dematerialisation process. Cameo Corporate Services confirmed that all security certificates received for dematerialisation were mutilated and cancelled after due verification by the depository participant. Additionally, the names of the depositories were substituted in the register of members as registered owners within the stipulated time limit.

Process Verification:	Status
Securities Confirmation:	Completed (accepted/rejected to depositories)
Certificate Mutilation:	Completed after due verification
Register Updates:	Completed within stipulated time
Stock Exchange Listing:	Confirmed for all securities

Corporate Information

Ponni Sugars (Erode) Limited operates from its registered office at ESVIN House, No.13, Rajiv Gandhi Salai (OMR), Perungudi, Chennai 600 096. The company holds CIN L15422TN1996PLC037200 and maintains ISO 9001/14001/45001/50001 certifications, reflecting its commitment to quality and compliance standards.

This quarterly filing represents part of the company's ongoing regulatory obligations, ensuring transparency and proper governance in securities handling and depository operations. The timely submission demonstrates the company's commitment to maintaining compliance with SEBI regulations and stock exchange requirements.