Shemaroo Entertainment GST Case Referred to Larger Bench by Bombay High Court

Shemaroo Entertainment Limited has updated stock exchanges regarding a significant development in its ongoing GST litigation matter. The Bombay High Court has referred the company's writ proceedings to a Larger Bench for adjudication, ensuring continued interim protection from enforcement actions.

Court Proceedings Update

Through an order dated April 17, 2026, the Hon'ble High Court of Judicature at Bombay has referred the questions of law arising in the writ proceedings filed by the company to a Larger Bench for adjudication. This development follows the company's previous disclosures made on August 03, 2024, February 05, 2025, December 08, 2025, and February 14, 2026.

The court has specifically directed that all interim orders passed in the matter shall continue to remain in force until the Larger Bench decides the issues. Most importantly, the direction that no further action shall be taken pursuant to the impugned show cause notice or order will continue until final orders are pronounced.

GST Demand and Penalty Details

The litigation centers around substantial GST demands and penalties imposed on the entertainment company:

Particulars	Amount	Legal Basis
ITC Demand with Interest & Penalty	Rs. 70.26 crores	Section 74(1) of CGST Act, 2017 read with Section 20 of IGST Act, 2017
Additional Penalty	Rs. 63.35 crores	Section 122(1)(ii) & (x) & Section 122(2)(b) of CGST Act, 2017 read with Section 20 of IGST Act, 2017

The primary issue involves the demand and recovery of allegedly inadmissible Input Tax Credit (ITC) amounting to Rs. 70.26 crores, along with applicable interest and penalty equal to the tax amount. Additionally, authorities have imposed a separate penalty of Rs. 63.35 crores under multiple sections of the CGST Act.

Current Status and Impact

The referral to a Larger Bench represents a significant procedural development in the case. The continuation of interim relief provides crucial protection for the company during the adjudication process.

Case Details	Information
Court Authority	Hon'ble High Court of Judicature at Bombay
Order Date	April 17, 2026
Current Status	Referred to Larger Bench
Interim Relief	Continues until final adjudication

Financial and Operational Impact

In view of the continuation of interim relief granted by the Hon'ble High Court, no coercive action can presently be taken pursuant to the impugned proceedings. The matter now remains pending adjudication before the Larger Bench, ensuring the company's operations continue without immediate financial disruption from enforcement actions.

The company has fulfilled its disclosure obligations under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, keeping stakeholders informed of this important legal development. The case will now await final determination by the Larger Bench of the Bombay High Court.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.53%	+3.47%	+8.19%	-7.71%	-3.73%	+22.36%

Shemaroo Entertainment Limited has disclosed a substantial acquisition of shares following the allotment of 352,500 equity shares to promoter Jai Buddhichand Maroo on March 27, 2026. The disclosure was made under Regulation 29(1) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Transaction Details

The acquisition was executed through preferential allotment, with Jai Maroo acquiring 352,500 equity shares representing 1.00% of the company's total share capital. The transaction details are summarized below:

Parameter:	Details
Shares Acquired:	352,500
Acquisition Method:	Preferential Allotment
Date of Allotment:	March 27, 2026
Percentage Acquired:	1.00%
Security Type:	Equity Shares

Shareholding Pattern Changes

The acquisition resulted in a significant change in Jai Maroo's shareholding pattern in Shemaroo Entertainment Limited. His total shareholding increased from 1,234,200 shares to 1,586,700 shares.

Shareholding Details:	Before Acquisition	After Acquisition	Change
Number of Shares:	1,234,200	1,586,700	+352,500
Percentage Holding:	4.52%	5.52%	+1.00%
Total Voting Capital:	27,320,299	28,730,299	+1,409,000

Company Capital Structure Impact

The preferential allotment expanded Shemaroo Entertainment's equity share capital from 27,320,299 shares to 28,730,299 shares. The company's total diluted share capital after the acquisition stands at 28,730,299 shares, indicating no outstanding convertible securities or warrants.

Regulatory Compliance

Jai Maroo, who serves as Executive Director with DIN 00169399, belongs to the promoter group of Shemaroo Entertainment Limited. The company's shares are listed on both the Bombay Stock Exchange Limited and National Stock Exchange of India Limited. The disclosure was filed on April 06, 2026, in compliance with SEBI regulations governing substantial acquisitions.

The acquisition did not involve any encumbrances such as pledges, liens, or non-disposal undertakings. No voting rights were acquired otherwise than by shares, and no warrants or convertible securities were involved in the transaction.