RITES Limited has received a favorable order from the Deputy Commissioner of State Tax (Appeal-1) in Ahmedabad, granting relief of ₹38.30 crore related to fiscal year 2019-20. The appellate authority allowed the company's appeal and partially set aside the earlier demand order issued by the State Tax Officer.

The order, dated September 30, 2026, was received by the company on October 3, 2026. The relief covers demands comprising tax, interest, and penalty pertaining to FY20. Consequently, subject to applicable laws, there is no further liability for RITES regarding this specific demand.

Appeal Details and Financial Impact

The proceedings originated from a demand order issued by the State Tax Officer concerning FY20. RITES filed an appeal against this order, which was subsequently heard by the Hon'ble Appellate Authority in Gujarat. The decision to allow the appeal results in the cancellation of the majority of the financial demand.

What the Numbers Show

The company had made a pre-deposit of ₹1.93 crore at the time of filing the appeal. With the appellate authority granting relief of ₹38.30 crore and setting aside the demand, the pre-deposit amount represents a small fraction of the total relief secured. This outcome eliminates the contingent liability associated with the original tax demand, interest, and penalty components for that period.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, highlighting the material nature of this regulatory development for the infrastructure consultancy firm.

Rites Limited held its 52nd Annual General Meeting on September 25, 2026, with all eight resolutions passed by requisite majority through e-voting, as confirmed by the consolidated scrutinizer's report.

The virtual meeting was conducted via Video Conferencing at 11:00 am and concluded at 12:30 pm. Voting was conducted through remote e-voting from September 22 to September 24, 2026, with additional e-voting facilities available during the meeting. As of the cut-off date on September 20, 2026, the company had 384,799 shareholders. A total of 180 members participated, including one nominee of the President of India, with 179 public shareholders attending via video conferencing.

Resolution-wise voting results

The following table summarises the consolidated e-voting outcome for all eight resolutions:

Governance and board appointments

Shareholders approved the adoption of audited standalone and consolidated financial statements for the financial year ended March 31, 2026, along with the Board's Report, Auditor's Report, and comments of the Comptroller and Auditor General of India. The dividend resolution, confirming the first, second, and third interim dividends declared in FY26 and the declaration of a final dividend on equity shares, received the highest approval at 99.91% votes in favour.

The reappointment of Rahul Mithal as Chairman and Managing Director, consequent to an extension of tenure, secured 98.41% votes in favour. Prem Singh Meena was appointed as Whole Time Director (Director Projects), while Jayant Kumar and Atul Singh were appointed as Government Nominee Directors. Dr. Deepak Tripathi was reappointed as Director (Technical) following his retirement by rotation. The Board was also authorised to fix remuneration for statutory auditors appointed by the Comptroller and Auditor General of India for FY27.

Audit observations

The statutory audit report contained no qualifications. The Comptroller and Auditor General of India provided 'Nil' comments on the audited financial statements for FY26. However, the Secretarial Audit Report noted observations regarding the appointment of the requisite number of Independent Directors, including a Women Independent Director, on the Board. The management reply to these observations was noted by the shareholders.

Scrutinizer and voting process

CS Sachin Agarwal, Partner at Agarwal S. & Associates, Company Secretaries, was appointed as scrutinizer by the Board of Directors to oversee the e-voting process. The scrutinizer confirmed that all resolutions were passed with requisite majority based on verification of data and reports generated from the voting system provided by National Securities Depository Limited (NSDL). The voting pattern was unlocked on September 25, 2026 in the presence of independent witnesses. The scrutinizer's report was issued to the company on September 25, 2026, pursuant to Regulation 44 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.