EIH Hotels has received a significant penalty from Mumbai tax authorities despite having previously settled the matter through an amnesty scheme. The hospitality company disclosed the development under regulatory requirements on February 7, 2026.

Penalty Details and Background

The Additional Commissioner of State Tax, Mumbai issued a review order dated February 6, 2026, imposing a penalty of ₹29,97,50,261 under Section 25 of the Maharashtra VAT Act, 2002. The penalty targets the company's hotels and divisions located in Mumbai and primarily concerns arbitrary enhancement in Food & Beverage income and other output services for Financial Year 2016-17.

Previous Settlement Under Amnesty Scheme

The company had previously addressed the FY 2016-17 tax matters through the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2023. Under this amnesty scheme, EIH Limited received a settlement order dated December 18, 2023, from the competent authority confirming acceptance of their settlement application.

This prior settlement makes the current penalty particularly significant, as it suggests the tax authorities are reviewing matters that were previously considered resolved under the amnesty provisions.

Company's Response and Legal Strategy

EIH Limited has indicated it is evaluating the legal merits of the review order issued by the Mumbai tax authorities. The company plans to initiate appropriate legal proceedings within the prescribed statutory timelines to challenge the penalty.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders regarding this material development.

Corporate Information

The disclosure was signed by Company Secretary Lalit Kumar Sharma on February 7, 2026. EIH Limited operates under CIN L55101WB1949PLC017981, with its corporate office located at 7, Sham Nath Marg, Delhi and registered office in Kolkata.

EIH Limited has issued a clarification to BSE regarding the recent surge in trading volume of its securities, confirming that the company remains fully compliant with all regulatory disclosure requirements. The response, dated February 6, 2026, addresses BSE's inquiry about significant volume increases observed across exchanges.

Regulatory Compliance Confirmation

In its official communication to BSE, EIH Limited confirmed that it has provided all relevant information and announcements required under SEBI regulations. Company Secretary Lalit Kumar, who signed the clarification, emphasized the company's adherence to disclosure norms.

Volume Increase Explanation

The company's response specifically addressed BSE's letter reference L/SURV/ONL/PV/SG/2025-2026/904, which sought clarification on the significant volume increase. EIH Limited stated that there is no undisclosed announcement or information that may have influenced the recent volume or price movement of its securities.

Corporate Structure Details

The clarification letter provides key corporate information about EIH Limited's organizational structure:

• Corporate Identification Number (CIN): L55101WB1949PLC017981
• Corporate Office: 7, Sham Nath Marg, Delhi – 110054
• Registered Office: N-806-A, 8th Floor, Diamond Heritage Building, 16, Strand Road, Fairley Place, Kolkata - 700001
• Website: www.eihltd.com

Market Surveillance Response

This clarification represents a standard market surveillance procedure where exchanges seek explanations for unusual trading patterns. EIH Limited's prompt response demonstrates its commitment to transparency and regulatory compliance, confirming that all material information has been appropriately disclosed to the market through established channels.