Chalet Hotels has published newspaper advertisements for its postal ballot notice seeking shareholder approval for strategic leadership appointments and the ₹171.00 crore Udaipur resort acquisition, fulfilling regulatory compliance requirements.

Regulatory Compliance Update

The company has formally published postal ballot advertisements in leading newspapers on January 1, 2026, pursuant to Regulation 47 of the SEBI Listing Regulations. The advertisements appeared in Financial Express, Free Press Journal, and Navshakti, ensuring wide public dissemination of the voting process.

E-Voting Process Timeline

Shareholders can participate in the electronic voting process for three special resolutions covering key leadership appointments and remuneration approvals. The voting timeline provides a 30-day window for member participation.

Key Resolutions for Approval

The postal ballot seeks member consent for three critical business decisions that will shape the company's leadership structure and strategic direction. These resolutions address both immediate leadership transitions and long-term governance frameworks.

Resolution 1: Managing Director Appointment

Shwetank Singh's appointment as Managing Director and CEO represents a significant leadership transition, bringing 26 years of industry experience to the role.

Resolution 2: Non-Executive Director Transition

Dr. Sanjay Sethi will transition from his role as Managing Director and CEO to Non-Independent Non-Executive Director, ensuring continuity of leadership expertise.

Resolution 3: Director Remuneration Framework

The third resolution establishes a commission-based remuneration structure for Non-Executive Directors, providing a systematic approach to director compensation.

Udaipur Acquisition Details

The board has approved the acquisition of a resort property in Udaipur, Rajasthan, featuring approximately 150 rooms for ₹171.00 crore, subject to due diligence completion and net asset adjustments.

The company has engaged M/s. MMJB & Associates LLP as scrutinizers for the postal ballot process, ensuring transparent and compliant voting procedures. Both proposed appointees are not related to existing Directors, KMPs, or Promoters and are not debarred by SEBI or other regulatory authorities.

Chalet Hotels Limited has received a significant penalty notice from the Maharashtra GST Department, with a total demand of ₹160.02 crore related to tax compliance issues from FY 2018-19. The company disclosed this development through a regulatory filing on January 1, 2026, pursuant to SEBI listing regulations.

GST Penalty Details

The Maharashtra GST Department issued orders on December 31, 2025, under section 74 of the Goods and Services Tax Act 2017. The penalty breakdown reveals the comprehensive nature of the demand:

Nature of Violations

The GST department's action stems from multiple compliance issues identified during their assessment. The Deputy Commissioner of State Tax, Nariman Point Nodal Division-2, Mumbai, issued the order citing several specific violations:

• Mismatch in Input Tax Credit claimed by the company
• GST liability on uniforms and shoes supplied to employees
• ITC reversal on ineligible and blocked credits related to construction activities
• Excess ITC credit claims beyond permissible limits

These violations collectively pertain to the company's GST filings and claims for the financial year 2018-19, indicating a retrospective assessment by the tax authorities.

Company's Response and Legal Strategy

Chalet Hotels has indicated its intention to challenge the GST department's orders through appropriate legal channels. The company believes the orders are contestable and plans to pursue legal recourse against the imposed penalty and interest demands.

The hospitality company has assured stakeholders that the penalty notice will not impact its day-to-day operations. According to the regulatory filing, there is no significant financial impact anticipated, and business operations continue as usual without disruption.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The company provided detailed information as required under the SEBI Master Circular dated November 11, 2024, ensuring transparency with investors and regulatory authorities.

The company secretary and compliance officer, Christabelle Baptista, signed the regulatory filing, confirming the accuracy of the disclosed information and the company's commitment to maintaining transparency with stakeholders regarding material developments.