Regaal Resources Limited has received a notice from the Director of Industries, Bihar, demanding the recovery of ₹16.56 crore in excess SGST reimbursement claims. The demand covers the period from April 2019 to December 2024 and includes an additional amount of ₹1.66 crore over and above the sum cited in an earlier notice.

The company disclosed this development on October 14, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notice was issued by the Department of Industries, Bihar State Investment Promotion Board Secretariat, Patna, regarding a clarification for making an incorrect claim for SGST reimbursement.

Details of the Recovery Demand

The total recoverable amount comprises the initial demand of ₹14,90,02,928.69 issued by the Office of the Joint Commissioner of State Tax, Kishanganj Circle, in February 2026, plus the new additional claim of ₹1,66,00,296.31. The aggregate excess claim/reimbursement stands at ₹16,56,03,225.

The company has been directed to deposit the amount and submit a clarification explaining why the sum should not be recovered along with interest at the rate of 18% per annum.

Company Response and Mitigation

Regaal Resources stated that it is examining the notice and will take appropriate legal steps, including filing replies or appeals, as advised. The company noted that based on its current assessment, an aggregate of ₹114.81 million is recovered or expected to be recovered from concerned distributors. This recovery stems from breaches of agreements where distributors utilized SGST credits to discharge IGST liabilities.

What the Numbers Show

The financial exposure is partially mitigated by potential recoveries from distributors. The expected recovery of ₹114.81 million covers approximately 69% of the total claimed amount of ₹165.6 million. However, the remaining liability of roughly ₹50.8 million remains with the company, subject to interest accrual at 18% per annum if not resolved through legal channels.

Regaal Resources Limited shareholders approved all four resolutions at the company's 14th Annual General Meeting (AGM) held on September 23, 2026. The meeting, conducted via Video Conferencing, resulted in the adoption of FY26 financial statements and the declaration of a final dividend of ₹0.25 per equity share.

The proceedings commenced at 3:00 pm and concluded at 4:21 pm, including time for e-Voting. Sixty members attended through VC/OAVM, representing the requisite quorum under the Companies Act, 2013. The Company Secretary confirmed that the Notice and Annual Report for FY26 were sent to shareholders on September 1, 2026. Voting results were disseminated to exchanges following the scrutiny by Vinod Kothari & Company.

Board composition updates

Munish Jhajharia was re-appointed as Non-Executive Director following his retirement by rotation. He brings over 25 years of experience in the construction and manufacturing sectors. Jhajharia currently serves as Vice President of the Merchants' Chamber of Commerce & Industry and is a Trustee of the Calcutta Heritage Collective Trust. The company disclosed that he has not been debarred from holding office by SEBI.

Resolutions passed

The meeting addressed both ordinary and special business items. The standalone financial statements for the year ended March 31, 2026, along with Board and Auditors' reports, were adopted. The declaration of a final dividend on equity shares for FY26 was also part of the ordinary business. A special resolution regarding remuneration by way of commission to Independent Directors was tabled.

The Statutory Auditors' report did not contain any qualifications or adverse remarks affecting the company's functioning. Similarly, the Secretarial Auditor's report was clean. The voting results will be disseminated to exchanges in due course, subject to receipt of requisite majority votes.

Governance and attendance

Mr. Anil Kishorepuria, Chairperson and Managing Director, chaired the proceedings. Key attendees included Mr. G.L Chaudhury from M/s. Singhi & Co., the Statutory Auditors, and Ms. Rinku Agarwal, Secretarial Auditor. Ms. Nitu Poddar from M/s Vinod Kothari & Company served as the scrutinizer for the e-voting process.

The Chairman addressed members on the company's business performance for FY26, industry outlook, and future growth strategy. Remote e-voting facilities were available from September 20 to September 22, 2026, with additional e-voting opportunities during the AGM itself.

What the Numbers Show

The voting data reveals a significant concentration of power among promoters. Promoters and their group held 73,263,940 shares, accounting for approximately 71% of the total outstanding equity capital of 102,993,860 shares. Consequently, promoter votes alone ensured the passage of all resolutions, as they voted unanimously in favor across all agenda items. Public non-institutional investors, who held 27,068,687 shares, had minimal impact on the outcome, with only a negligible number of dissenting votes recorded against the dividend declaration and director re-appointment.