Urban Company Receives GST Show Cause Notice of INR 8,70,03,806 for FY 2022-23 from Tamil Nadu Authorities

Urban Company Limited has received a Show Cause Notice (SCN) from the Commercial Tax Officer, Guindy, South-II, Chennai South, Tamil Nadu, alleging certain discrepancies in the GST returns filed for the financial year 2022-23. The notice, received on May 04, 2026 at 05:08 p.m., was issued under Section 73 of the SGST Act, 2017. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Nature of the Show Cause Notice

The SCN has been issued by the Commercial Tax Officer requesting further clarification on the difference in turnover reported in GSTR 1 and GSTR 3B, as well as excess Input Tax Credit (ITC) claimed by the company. The total demand under the SCN covers the period April 2022 to March 2023. The key details of the notice are summarised below:

Parameter:	Details
Issuing Authority:	Commercial Tax Officer, Guindy, South-II, Chennai South, Tamil Nadu
Nature of Action:	Show Cause Notice under Section 73 of SGST Act, 2017
Date of Receipt:	May 04, 2026 at 05:08 p.m.
Period of Applicability:	April 2022 to March 2023 (FY 2022-23)
Total Demand (incl. interest & penalty):	INR 8,70,03,806 (Rupees eight crore seventy lakhs three thousand eight hundred and six only)

Company's Position on the Notice

Urban Company has contested the basis of the demand, stating that it has duly discharged tax on the turnover reported in its GST returns for FY 2022-23 and claimed ITC in accordance with the provisions of the applicable Act. The company contends that the Tax Officer has incorrectly considered the turnover under Section 9(5) of the CGST Act—on which tax has been discharged by the company as an e-commerce operator—as the company's own turnover.

The company has stated that it believes it has a strong case on merits, supported by the opinion of its external legal and tax advisors, and will be responding to the SCN within the timelines prescribed.

Impact Assessment

Urban Company has clarified that the aforesaid SCN will not impact the financial, operational, or other activities of the listed entity. The disclosure was signed by Sonali Singh, Company Secretary and Compliance Officer (Membership No.: A26585), and the details are also being hosted on the company's investor relations website at https://investorrelations.urbancompany.com/ .

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-4.74%	-7.91%	+14.33%	-1.88%	-16.28%	-16.28%

Urban Company Limited has announced a significant employee stock option grant through formal regulatory disclosure to stock exchanges. The company's Nomination and Remuneration Committee approved the allocation of 1,54,29,253 stock options under the Employee Stock Option Scheme 2015 on May 01, 2026 at 15:50 p.m. IST through circulation.

Regulatory Disclosure and Compliance

The announcement was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, with formal communications sent to both National Stock Exchange of India Limited (Symbol: URBANCO) and BSE Limited (Scrip Code: 544515). The disclosure follows SEBI Master Circular dated January 30, 2026 requirements for transparency in employee stock option grants.

Stock Option Grant Structure

The comprehensive stock option grant encompasses detailed terms and conditions as outlined in the regulatory filing:

Parameter:	Details
Total Options Granted:	1,54,29,253 stock options
Scheme:	Employee Stock Option Scheme 2015
Exercise Price:	₹1 per stock option
Share Conversion:	Each option convertible to one equity share
Face Value:	₹1 per equity share
Exercise Period:	10 years from vesting date
Lock-in Period:	No lock-in restrictions on exercised shares

Scheme Features and Employee Benefits

The Employee Stock Option Scheme 2015 operates under SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, ensuring regulatory compliance. The scheme includes comprehensive provisions for various employment scenarios including death, permanent incapacity, resignation, termination, retirement, and abandonment, providing structured handling of stock options across different employee lifecycle events.

Each stock option grants the holder the right to convert into one fully paid-up equity share with a face value of ₹1. The 10-year exercise window from vesting date provides substantial flexibility for eligible employees, while the ₹1 exercise price represents a nominal cost structure.

Corporate Governance and Communication

The formal disclosure was signed by Sonali Singh, Company Secretary and Compliance Officer (Membership No.: A26585), emphasizing proper corporate governance processes. Urban Company Limited, formerly known as UrbanClap Technologies India Limited and UrbanClap Technologies India Private Limited, maintains its registered office in New Delhi and corporate office in Gurgaon.

The company has committed to hosting detailed information about this stock option grant on its investor relations website at investorrelations.urbancompany.com, ensuring continued transparency and stakeholder communication regarding this significant employee incentive initiative.