Brigade Hotel Ventures Limited has disclosed to stock exchanges that the Income Tax Department conducted a survey at its registered office from December 9 to December 13, 2025. The company made the disclosure under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Survey Details and Timeline

The Income Tax Department initiated the survey under Section 133A of the Income Tax Act, 1961. The survey operations spanned five days at the company's registered office located at World Trade Center, Brigade Gateway Campus, Bengaluru.

Company Response and Operations

Brigade Hotel Ventures extended its full cooperation with the authorities throughout the survey period. The company provided all necessary documents requested by the Income Tax Department officials. The hospitality company emphasized that its business operations continued as usual during the survey period and were not impacted by the proceedings.

Current Status and Regulatory Compliance

The company has made mandatory disclosures as required under SEBI regulations. The disclosure was made in compliance with Regulation 30 of the SEBI Listing Regulations, read with Para A of Part A of Schedule III, and SEBI Master Circular dated November 11, 2024.

The intimation was signed by Nirupa Shankar, Managing Director, and communicated to both NSE and BSE. The company has also hosted the information on its official website at www.bhvl.in as per regulatory requirements. Brigade Hotel Ventures operates in the hotels and restaurants sector and is listed on both the National Stock Exchange and Bombay Stock Exchange.

Brigade Enterprises Limited , a prominent real estate developer, has come under the scrutiny of tax authorities for alleged undervaluation of construction services. The company recently received a show cause notice from the Directorate General of GST Intelligence, Bengaluru, raising questions about its tax practices related to joint development agreements.

Key Points of the GST Notice

1. Allegation: Undervaluation of construction services provided to landowners through joint development agreements and short payment of GST.
2. Response Time: Brigade Enterprises has been given 30 days to respond to the notice.
3. Financial Implications: The notice involves two significant demands:
   • Rs. 91.80 crore for the Brigade Parkside North project
   • Rs. 386.15 crore for multiple projects including Brigade Senate-1, Brigade Senate-2, Brigade Deccan Heights, and Brigade North Ridge Neo

Company's Stance

Brigade Enterprises maintains that the show cause notice lacks merit. The company has stated its intention to make necessary submissions to the GST authorities within the stipulated timeframe. Importantly, the firm does not anticipate any impact on its financial or operational activities due to this notice.

Financial Context

To provide context to the GST demands, let's look at some key financial metrics of Brigade Enterprises:

The GST demands, totaling approximately Rs. 477.95 crore, represent about 2.16% of the company's total assets. While significant, the amount is relatively small compared to the company's overall financial position.

Implications and Outlook

1. Regulatory Compliance: This case highlights the increasing scrutiny on real estate transactions, particularly in joint development agreements.
2. Financial Impact: If upheld, the GST demands could affect the company's cash flow, though Brigade Enterprises appears confident in its position.
3. Industry-wide Implications: The outcome of this case could set a precedent for how joint development agreements are valued for GST purposes in the real estate sector.

As the situation develops, stakeholders will be watching closely to see how Brigade Enterprises navigates this regulatory challenge and its potential impact on the company's future operations and the broader real estate industry.