BirlaNu Limited has secured a significant legal victory with the Telangana High Court rescinding an entire GST demand of ₹8.38 crore along with an equal penalty amount. The company received the favorable court order on January 7, 2026, relating to a Show Cause Notice issued under Goods and Services Tax laws.

Court Order Details

The Telangana High Court disposed of the writ petition in BirlaNu's favor on December 30, 2025. The original matter concerned the company's Input Service Distributor registration, where tax authorities had proposed disallowance of the distribution methodology and levy of penalty.

GST Matter Resolution

The GST authorities had initially issued a Show Cause Notice regarding BirlaNu's Input Service Distributor registration, challenging the distribution methodology employed by the company. The proposed action included both the primary demand and an equivalent penalty amount, totaling ₹16.76 crore in potential liability.

Following the court's intervention, no tax, penalty, interest, or any other amount is payable by the company in this regard. The complete rescission of demands represents a comprehensive victory for BirlaNu in this tax matter.

Regulatory Disclosure Requirements

BirlaNu explained that the matter was not disclosed earlier to stock exchanges as it fell below the materiality thresholds prescribed under Regulation 30 of the SEBI Listing Regulations and the company's Policy on Determination of Materiality. The disclosure became mandatory following receipt of the favorable order, which elevated the matter's materiality status.

The company made the disclosure pursuant to Regulation 30 of the SEBI Listing Regulations, specifically under the criteria for ongoing litigation matters that become material.

Financial Impact

BirlaNu indicated that the favorable court order is expected to have a positive impact on the company. The resolution eliminates the potential financial liability of ₹16.76 crore that was hanging over the company, comprising both the primary demand and penalty components.

The successful defense of its Input Service Distributor registration methodology validates BirlaNu's GST compliance approach and removes uncertainty around this particular tax matter.

BirlaNu Limited has filed comprehensive regulatory disclosures following the completion of a significant inter-se transfer of equity shares among its promoter group members. The company initially submitted Form B disclosures on December 31, 2025, under SEBI (Prohibition of Insider Trading) Regulations, 2015, and subsequently filed post-transaction disclosure under Regulation 10(6) of SEBI Takeover Regulations on January 2, 2026.

Transaction Completion and Regulatory Framework

The share transfer transaction was completed on December 29, 2025, with Chandrakant Birla acquiring 30,07,836 equity shares representing 39.89% of the company's total share capital through inter-se transfers from nine promoter group entities. The transaction was conducted under Regulation 10(1)(a)(ii) of the SEBI Takeover Regulations, which provides exemption from making an open offer for inter-se transfers among promoter group members:

Selling Entities and Share Distribution

The shares were acquired from nine promoter group entities as part of an internal restructuring exercise. Central India Industries Limited was the largest contributor in the transaction:

Post-Transaction Shareholding Pattern

Following the completion of the inter-se transfer, there has been significant consolidation of shareholding under Chandrakant Birla while maintaining the overall promoter group shareholding percentage:

Compliance and Documentation

The transaction demonstrates strict adherence to regulatory requirements with proper disclosures filed at each stage. The company filed initial disclosure under Regulation 10(5) on December 20, 2025, followed by insider trading disclosures under SEBI regulations on December 31, 2025, and post-transaction disclosure under Regulation 10(6) on January 2, 2026.

BirlaNu Limited's equity share capital consists of 75,40,899 equity shares of ₹10.00 each, with shares listed on both BSE Limited (Scrip Code: 509675) and National Stock Exchange of India Limited (Symbol: BIRLANU). This internal restructuring represents a strategic consolidation of shareholding under a single promoter entity while maintaining regulatory compliance through comprehensive disclosure procedures.