Fortis Malar Hospitals Receives GST Show Cause Notice, Confirms INR 4.19 Lakhs Demand

Regulatory Update: GST Show Cause Notice

Fortis Malar Hospitals Limited has recently received a show cause notice from the Goods and Services Tax (GST) authorities. This development has implications for the company's financial and regulatory compliance.

Details of the Notice

Amount Involved: The initial show cause notice pertained to INR 3454.54 Lakhs (approximately Rs 34.54 crore).
Time Period: The notice covers the period from April 2022 to March 2023.
Issuing Authority: The notice was issued by the Tamil Nadu Intelligence Division.

Outcome of the Notice

Confirmed Demand: The GST Authority has confirmed a demand of INR 4.19 Lakhs.
Breakdown of Demand:
- Principal Amount: INR 1.69 Lakhs
- Interest: INR 0.80 Lakhs
- Penalty: INR 1.70 Lakhs
Resolution: The notice for the balance amount has been dropped by the authorities.

Implications and Next Steps

Financial Impact: The confirmed demand of INR 4.19 Lakhs is significantly lower than the initial amount in the show cause notice, potentially minimizing the financial impact on Fortis Malar Hospitals.
Regulatory Compliance: This outcome suggests that the company was able to satisfactorily address most of the concerns raised in the initial notice.
Future Vigilance: Despite the favorable resolution, this incident highlights the importance of maintaining stringent tax compliance practices.

Conclusion

While the initial show cause notice raised concerns about a substantial tax liability, the final outcome has been relatively favorable for Fortis Malar Hospitals. The significant reduction in the demanded amount from INR 3454.54 Lakhs to INR 4.19 Lakhs indicates that the company was able to effectively address most of the issues raised by the GST authorities.

This development underscores the importance of maintaining robust tax compliance systems and the ability to effectively respond to regulatory inquiries. Stakeholders can take some reassurance from the company's apparent success in managing this regulatory challenge, but should continue to monitor the company's ongoing compliance efforts.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.49%	-2.49%	-5.08%	-16.68%	-0.19%	+20.86%

IHH Healthcare Berhad has announced the completion of its mandatory open offers for shares in Fortis Healthcare Limited and Fortis Malar Hospitals Limited, marking a significant development in the Indian healthcare sector.

Open Offer Results

The tendering period for both offers closed on November 4, 2025, with the following results:

Company	Shares Offered	Shares Tendered	Percentage Tendered
Fortis Healthcare	197,025,660	1,778	0.0002%
Fortis Malar Hospitals	4,894,308	4,523	0.02%

IHH's Shareholding Post-Offer

Following the completion of these open offers, IHH Healthcare's indirect shareholding stands as follows:

Company	Shares Held	Ownership Percentage
Fortis Healthcare	235,295,895	31.17%
Fortis Malar Hospitals	11,756,925	62.73%

Transaction Details

The transaction included a subscription of 235,294,117 new Fortis shares through preferential allotment to Northern TK Venture Pte Ltd, an indirect wholly-owned subsidiary of IHH Healthcare.

Market Implications

The minimal response to the open offers suggests that existing shareholders in both Fortis Healthcare and Fortis Malar Hospitals are largely satisfied with their current holdings and IHH's management. This could be interpreted as a vote of confidence in the current direction and strategy of these healthcare providers under IHH's influence.

Regulatory Compliance

As per the LODR (Listing Obligations and Disclosure Requirements) data, Fortis Malar Hospitals has duly informed the BSE Limited about this development, ensuring transparency and compliance with regulatory requirements.

The completion of these open offers marks a crucial step in IHH Healthcare's investment in the Indian healthcare market, solidifying its position as a significant stakeholder in both Fortis Healthcare and Fortis Malar Hospitals.