Leela Palaces Hotels & Resorts Limited has announced the incorporation of a wholly owned subsidiary, Leela Imperial Suites Private Limited, as part of its strategic expansion in the luxury hospitality sector. The Ministry of Corporate Affairs, Government of India issued the Certificate of Incorporation on January 05, 2026.

Subsidiary Details and Capital Structure

The newly incorporated entity operates under the name Leela Imperial Suites Private Limited and has been established with specific capital parameters designed to support its operational objectives.

The company holds complete ownership of Leela Imperial through 100% subscription to the share capital in cash, along with its nominee shareholders. The subsidiary is registered with the Registrar of Companies, Delhi and is yet to commence its commercial operations.

Business Objectives and Strategic Focus

Leela Imperial Suites Private Limited has been established with clear operational mandates aligned with the parent company's luxury hospitality portfolio. The main object of the subsidiary is to own, operate, manage and develop luxury hotels and resorts under "The Leela" brand.

This incorporation represents a continuation of Leela Palaces Hotels & Resorts Limited's core business activities in the hospitality sector. The subsidiary will operate within the same industry vertical as its parent company, focusing specifically on luxury accommodation services.

Regulatory Compliance and Documentation

The incorporation has been completed in full compliance with regulatory requirements under the Securities and Exchange Board of India regulations. The company has made the necessary disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key regulatory aspects include:

• No governmental or regulatory approvals required for the incorporation
• Complete documentation filed with the Ministry of Corporate Affairs
• Proper disclosure made to stock exchanges as per listing obligations
• Full compliance with SEBI Master Circular requirements

Financial Structure and Operations

The subsidiary begins operations with a minimal paid-up capital structure, reflecting its early-stage status. Since Leela Imperial was incorporated on January 05, 2026, no turnover data is available for FY 2024-25 as the entity has yet to commence commercial operations.

The incorporation does not fall under related party transactions in the traditional acquisition sense, as this represents the creation of a new wholly owned subsidiary rather than an external acquisition. The transaction involved 100% cash subscription to the share capital, establishing clear ownership and control structures from the outset.

Leela Palaces Hotels & Resorts Limited has disclosed that its material subsidiary Tulsi Palace Resort Private Limited (TPRPL) has received multiple Order-in-Original documents from GST authorities in Jaipur. The orders present a mixed outcome, with one case being dropped entirely while three others confirm tax demands with applicable interest and penalties.

GST Orders Summary

TPRPL received four separate orders from various GST authorities in Jaipur on December 31, 2025. The orders address different alleged violations ranging from wrong tax adjustments to short payment of taxes on customer advances.

Nature of Alleged Violations

The GST authorities identified four distinct areas of concern in TPRPL's tax compliance. The first case involved wrong adjustment of tax liability in Table 5O of Form GSTR-9C, which was completely dismissed by the authorities. Two separate cases related to short payment of tax with respect to advances received from customers, while the fourth case concerned non-payment of tax under reverse charge on import of services.

Financial Impact Assessment

Leela Palaces Hotels & Resorts has confirmed that these orders do not have any material impact on the company's financial position, operations, or business activities. For the three cases where demands have been confirmed, TPRPL is evaluating appropriate legal remedies available under applicable laws, including filing appeals against the respective orders.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The company provided comprehensive details in accordance with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, ensuring full transparency regarding these material developments at its subsidiary level. All order details have been made available on the company's investor website at www.theleela.com/investors .