Fusion Finance has received a favorable resolution to its GST proceedings, with authorities dropping the case that initially involved a Rs 2.84 crore demand. The company received an order dated December 20, 2025, from the Joint Commissioner Corporate Circle, Varanasi, Uttar Pradesh, dropping the proceedings under section 73 of the CGST Act with nil demand.

Background of the GST Notice

The company had previously received a show cause notice on September 26, 2025, from the Joint Commissioner Corporate Circle in Varanasi, Uttar Pradesh. The notice was issued under section 73 of the Central Goods and Services Tax (CGST) Act, directing the company to pay a total of Rs 2.84 crore.

Allegations and Resolution

The original show cause notice had alleged that Fusion Finance claimed excess Input Tax Credit (ITC) and failed to reverse ITC as per rules 42/43 of the CGST Act, 2017, during the period from April 2021 to March 2022. However, the recent order has concluded these proceedings favorably for the company.

Current Status and Impact

According to the company's regulatory disclosure, no action is required following the order dropping the proceedings. The GST Authority has concluded the matter with nil demand, effectively resolving the Rs 2.84 crore notice that was initially raised.

Regulatory Compliance

Fusion Finance has disclosed this positive development to both the National Stock Exchange of India Limited and BSE Limited in compliance with Regulation 30 of the SEBI Listing Regulations. The company's earlier confidence in having adequate legal grounds to substantiate its position appears to have been vindicated with this favorable outcome.

This resolution eliminates any potential financial impact from the original GST proceedings and provides clarity for investors and stakeholders who had been monitoring this regulatory matter.

Fusion Finance , a prominent player in the financial services sector, has announced a significant leadership restructuring aimed at strengthening its governance and compliance frameworks to support future growth plans.

New Board Appointments

The company's Board of Directors has approved the appointment of Mr. Rajeev Sardana as an Additional Non-Executive Independent Director for a five-year term, effective August 18, 2025, subject to shareholder approval. Mr. Sardana, a former Executive Management member at HDFC Ltd., brings over three decades of experience in financial services, particularly in retail lending and credit risk management.

In a parallel move, Mr. Sanjay Garyali, who has been serving as the company's CEO since March 2025, has been appointed as an Additional Director designated as Whole Time Director for a five-year term, also effective August 18, 2025. Mr. Garyali's appointment has received prior approval from the Reserve Bank of India (RBI). With 28 years of experience in the finance industry, he previously led the Urban Finance business at L&T Finance, managing a portfolio worth INR 40,000.00 crore.

Key Management Changes

The restructuring extends to several key positions within the company:

1. Mr. Deepak Madaan has resigned from his position as Company Secretary, Chief Compliance Officer & Investor Relations, effective August 17, 2025.

2. Mr. Vikrant Sadana has been appointed as the new Company Secretary & Compliance Officer, effective August 18, 2025. Sadana brings 18 years of experience in corporate governance and compliance.

3. Mr. Nishant Monga joins as the new Chief Compliance Officer from August 18, 2025. Monga is an accomplished professional with over 27 years of experience in ethics, compliance, and risk management across various sectors.

4. Mr. Vikas Jagdish Jajoo has resigned as Head of Internal Audit, effective August 17, 2025.

5. Mr. Satish Mani, currently the Chief Vigilance Officer, has been appointed as the Interim Head of Internal Audit, effective August 18, 2025.

Strategic Implications

These appointments and changes are part of Fusion Finance's strategy to enhance its leadership capabilities and ensure robust compliance and risk management frameworks. The company aims to support its next phase of growth by expanding the breadth of its compliance and secretarial functions while segregating these roles in line with its expansion plans.

The restructuring demonstrates Fusion Finance's commitment to strengthening its corporate governance and adapting to the evolving regulatory landscape in the financial services sector. With these changes, the company is positioning itself for sustainable growth and improved operational efficiency in the coming years.