Vedant Fashions has received a favourable appellate order in a Goods and Services Tax dispute, eliminating a penalty liability of ₹2.73 lakh and an associated interest demand.

The Additional Commissioner of CGST and CEX (Appeals-III), Mumbai, passed the Order-in-Appeal on August 28, 2026. The company received the communication via email on September 08, 2026, marking the resolution of an appeal filed against an earlier Order-in-Original dated November 20, 2025.

Appeal Outcome Details

The appellate authority disposed of the case under Section 107(11) of the Central Goods and Services Tax Act, 2017, along with corresponding provisions of the Maharashtra SGST Act and IGST Act. The original dispute stemmed from a GST audit covering FY2017-18, FY2018-19, and FY2019-20 involving Manyavar Creations Private Limited, which was later amalgamated with Vedant Fashions.

The key directions issued by the Appellate Authority were:

• Upheld the appropriation of Input Tax Credit amounting to ₹1,73,471, which had already been voluntarily reversed by the company and was not disputed in the appeal.
• Set aside the demand for interest entirely.
• Set aside penalties aggregating to ₹2,73,471.

Financial Impact Assessment

Vedant Fashions stated that the order is favourable as it removes the liability for interest and penalties. The company confirmed there is no material adverse impact on its financial position, operations, or other activities.

This disclosure serves as an update to the company's earlier intimation dated December 01, 2025, regarding the initial tax order. The resolution clears a regulatory overhang from the 2017-2020 period without affecting current operational metrics or balance sheet strength.

Vedant Fashions Limited has published newspaper advertisements confirming its 24th Annual General Meeting (AGM) scheduled for Monday, September 28, 2026. The notices appeared in The Economic Times (all India editions) and Sangbad Pratidin (Kolkata edition) on September 5, 2026.

The Board of Directors recommended a final dividend of ₹7.75 per equity share for FY26, subject to shareholder approval at the meeting. The event will be conducted via video conferencing at 3:00 pm. The record date for voting rights and dividend entitlement is Monday, September 21, 2026. If approved, the dividend will be paid on or after Tuesday, September 29, 2026.

Key AGM Resolutions

Shareholders will transact both ordinary and special business. Key items include:

• Adoption of audited financial statements for FY26 ended March 31, 2026.
• Declaration of the final dividend of ₹7.75 per share.
• Re-appointment of Mrs. Shilpi Modi as a director liable to retire by rotation.
• Re-appointment of Mr. Ravi Modi as Chairman and Managing Director for five years.
• Re-appointment of Mrs. Shilpi Modi as Whole-time Director for five years.
• Re-appointment of Mr. Manish Mahendra Choksi as Independent Director for a second term.
• Appointment of Mr. Nihir Parikh and Ms. Neetu Kashiramka as Independent Directors.

Director Reappointments and Remuneration

The Board seeks approval for the reappointment of executive directors with revised remuneration caps effective August 28, 2026.

Mr. Ravi Modi’s previous remuneration was ₹34.20 million in FY26. Mrs. Shilpi Modi’s previous remuneration was ₹22.80 million in FY26.

New Independent Directors

Consequent to the completion of Mr. Tarun Puri’s tenure on September 5, 2026, the Board appointed two new independent directors effective September 2, 2026:

• Mr. Nihir Parikh: Former CEO of Nykaa Fashion and NykaaMan. He brings experience in consumer technology and omnichannel retail.
• Ms. Neetu Kashiramka: Chartered Accountant and former MD/CFO of VIP Industries Limited. She brings over 28 years of finance and corporate governance experience.

Both will serve five-year terms subject to shareholder approval at the AGM.

Committee Reconstitution

The Board reconstituted its key committees effective September 2, 2026.

Audit Committee

Nomination and Remuneration Committee

Voting and Logistics

Remote e-voting commences on Friday, September 25, 2026, at 9:00 am and ends on Sunday, September 27, 2026, at 5:00 pm. KFin Technologies Limited is the e-voting service provider. Proxy appointment is not available for this virtual AGM.