Everest Industries Limited has achieved a significant milestone in its ongoing land sale transaction at Podanur. The company has successfully obtained approval to modify its environmental clearance, paving the way for the sale of land in a deal valued at ₹133.86 crore.

Transaction Structure and Progress

The land sale transaction, structured in three payments, has seen notable progress:

With the recent approval from the Ministry of Environment, Forest and Climate Change (MoEF & CC) for the amendment in the Environment Clearance (EC), Everest Industries is now poised to receive the second tranche payment of ₹8 crore.

Transaction Details

• Buyer: G Square Realtors Private Limited, a prominent real estate developer in Tamil Nadu
• Total Consideration: ₹133,85,68,000
• Land Type: Vacant land
• Completion Timeline: Expected within 4 months from the term sheet execution (August 28, 2025) or 3 months from the environmental clearance receipt, whichever is later

Key Points

• The transaction is not classified as a related party transaction.
• The land sale is not part of any scheme of arrangement.
• The buyer does not belong to the promoter/promoter group or group companies of Everest Industries.

This development marks a crucial step for Everest Industries in executing its strategic land sale. The successful modification of the environmental clearance not only facilitates the progression of the transaction but also demonstrates the company's ability to navigate regulatory requirements effectively.

Investors and stakeholders will likely view this as a positive move, potentially impacting the company's financial position and future strategies. As the transaction progresses, market observers will be keen to see how Everest Industries utilizes the proceeds from this significant land sale.

Everest Industries Limited , a prominent player in the building solutions sector, has received a show cause notice from the GST Department in Jabalpur, Madhya Pradesh, regarding excess Input Tax Credit (ITC) claimed for the financial year 2019-20. The notice, which proposes to recover ₹3.66 crore, has prompted the company to prepare a robust defense, asserting its strong legal and factual grounds.

Details of the GST Demand

The show cause notice, issued under Section 74 of the Central GST Act, 2017, SGST Act, 2017, and IGST Act, 2017, outlines the following proposed recovery:

The crux of the issue lies in the alleged discrepancy between the ITC claimed in GSTR 3B compared to GSTR 2A/2B for the financial year 2019-20.

Company's Stance and Response

Everest Industries maintains a confident outlook regarding the matter. In an official statement, the company expressed:

1. Strong legal and factual grounds to defend the case
2. No expectation of material financial impact
3. Belief that the potential demand is unlikely to materialize as a liability

The company is currently in the process of preparing a comprehensive response to the show cause notice. Everest Industries' management appears resolute in its stance, indicating their readiness to present and defend their case before the relevant authorities.

Regulatory Compliance

In adherence to regulatory requirements, Everest Industries has duly informed the stock exchanges about this development. The company filed the intimation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with its stakeholders.

Market Implications

While the GST demand is significant, the company's confident stance and the nature of the notice being at an initial stage suggest that immediate market reactions may be limited. Investors and stakeholders will likely keep a close watch on how this situation unfolds and its potential impact on the company's financials in the coming quarters.

As the matter progresses, Everest Industries' ability to successfully defend its position and resolve the issue will be crucial in maintaining investor confidence and financial stability.