Sunteck Realty received a show cause notice from the Goods and Services Tax department on September 24, 2026, demanding ₹59.44 crore for FY23. The dispute centers on tax liability for Transferable Development Rights (TDR) procured from the open market.

The notice, issued under Section 73 of the GST Act, aggregates tax, interest, and penalty amounts related to TDR originally granted by local bodies. The company stated it is evaluating compliance obligations and filed this disclosure under Regulation 30 of SEBI Listing Regulations.

Company Response and Legal Stance

Sunteck Realty firmly believes the notice lacks merit. The company argues that the transaction in question is neither a supply of goods nor a supply of services, placing it outside the scope of GST. Consequently, no GST is applicable to such transactions.

The company plans to file a reply disputing the demand before the Office of the Deputy Commissioner of State Tax, Mazgaon, Mumbai. Sunteck Realty highlighted two specific errors in the notice:

• The amount is calculated as twice the actual value.
• The notice was raised despite a detailed comprehensive audit already being concluded by tax authorities for the same financial year.

Financial Impact Assessment

The company asserts there is no expected material financial impact from this development. It maintains that the notice will not affect its financial, operational, or other activities. Sunteck Realty intends to take all necessary actions to defend its case before adjudicating authorities.

What the Numbers Show

The demand of ₹59.44 crore includes interest and penalty components alongside the principal tax liability. The company’s explicit claim that the notice considers the amount two times the actual figure suggests a potential overstatement of the base tax demand. Furthermore, the existence of a concluded comprehensive audit for FY23 prior to this notice indicates a procedural conflict between the audit findings and the subsequent demand raised under Section 73.

Sunteck Realty Limited shareholders approved all five resolutions passed at the 43rd Annual General Meeting held on September 24, 2026. Key approvals included the adoption of FY26 financial statements and a special resolution enabling the company to raise funds through the further issue of securities.

The voting results, disclosed on September 25, 2026, show strong shareholder support. The special resolution for raising funds received 99.85% votes in favor, while the ordinary resolution for director re-appointment secured 98.91% support. The meeting was conducted via Video Conferencing/Other Audio-Visual Means (VC/OAVM).

Financial performance recap

The AGM followed the company's record financial performance for FY26. Profit after tax rose 34% to ₹202 crore, and revenue from operations grew 32% to ₹1,124 crore. Pre-sales reached an all-time high of ₹3,157 crore, marking a 25% increase over the previous year. Collections rose 14% to ₹1,433 crore, while EBITDA expanded 64% to ₹305 crore, with margins improving by over five percentage points to 27%.

Financial highlights

The company maintained a strong balance sheet, closing the year with a net debt-to-equity ratio of 0.06x. Net cash flow surplus increased 48% to ₹552 crore, delivering a cash flow return on capital employed (RoCE) of approximately 20%. The following table summarizes key FY26 metrics:

Portfolio and business development

Total Gross Development Value (GDV) stood at ₹41,030 crore in FY26, more than doubling from ₹19,345 crore in FY23. The portfolio is diversified across ten micro-markets and three customer segments: Uber Luxury (32%), Premium Luxury (37%), and Aspirational Luxury (31%). Approximately 28% of the GDV is owned outright, while 69% is under joint ventures and joint development agreements.

Capitalizing on strong cash flows, Sunteck invested ₹813 crore in business development during FY26, more than four times the prior year's investment. The company also highlighted its annuity portfolio, which currently earns ~₹76 crore annually, with expectations for lease rentals to reach ~₹450 crore over the next three years as new projects come into operation.

AGM proceedings and voting details

The 43rd Annual General Meeting was conducted via VC/OAVM. Shareholders approved the audited standalone and consolidated financial statements for FY26 and ratified the remuneration of the cost auditor for FY27. Ajeet Singh was re-appointed as a director retiring by rotation. Additionally, shareholders passed a special resolution enabling the further issue of securities.

Kamal Khetan, Chairman and Managing Director, addressed members virtually, emphasizing the company's focus on disciplined growth and capital efficiency. The meeting concluded with the appointment of Veeraraghavan N. as scrutinizer for the e-voting process facilitated by NSDL.

What the numbers show

The divergence between revenue growth (32%) and EBITDA growth (64%) indicates significant operating leverage as completed projects flow through the profit and loss account. With net debt-to-equity at just 0.06x and India Ratings reaffirming the long-term rating at AA, Sunteck Realty combines high growth with low leverage, distinguishing it from many peers in the real estate sector. The approval of the fund-raising resolution suggests the company may seek additional capital to fuel its expanding GDV pipeline despite its current low leverage.