Hindustan Zinc Limited has completed the payment of ₹63.90 lakh compounding fees following the receipt of a final order from the Regional Director. The company made the payment after receiving the final order on December 30, 2025, concluding the regulatory compliance process that began with an interim order in December.

Final Order and Payment Completion

Hindustan Zinc Limited received the final order from the Office of Regional Director, North Western Region, Ministry of Corporate Affairs on December 30, 2025, at 02:00 PM IST. The company promptly paid the compounding fees aggregating to ₹63.90 lakh, which included amounts imposed on both the company and ex-Whole Time Directors.

Regulatory Timeline and Process

The regulatory process began with an interim order dated December 16, 2025, which was received via email on December 17, 2025. Parent company Vedanta Limited had filed the initial regulatory disclosure under SEBI Regulation 30 on December 17, 2025, at 08:13 PM IST, informing stock exchanges about the penalty levy.

Nature of Compliance Violation

The penalty relates to Hindustan Zinc Limited's failure to mention Director Identification Numbers (DIN) of Directors as required under Section 158 of the Companies Act during financial years 2014-15 to 2020-21. The company acknowledged that the lapse was purely inadvertent and has been fully rectified from financial year 2022 onwards.

Impact Assessment and Current Status

Hindustan Zinc Limited confirmed no impact on its financial, operational, or other activities due to this penalty. The company has maintained transparency by ensuring all required disclosures are available on stock exchange websites, completing its regulatory obligations under SEBI Listing Regulations.

Vedanta Limited has made a regulatory disclosure regarding a GST penalty order received by its subsidiary Hindustan Zinc Limited (HZL). The disclosure was made under Regulation 30 of SEBI Listing Regulations, with Vedanta informing stock exchanges about the penalty levy on December 15, 2025.

Regulatory Disclosure Framework

Vedanta Limited filed the disclosure pursuant to Regulation 30 read with Schedule III of SEBI Listing Regulations. The parent company informed both BSE Limited and National Stock Exchange that HZL had made the required disclosure under Clause 20 of Para A of Part A of Schedule III for penalty levy by tax authorities.

GST Penalty Order Details

The penalty order was issued by the Office of the Assistant Commissioner, Central Goods and Service Tax Division-Rudrapur against Hindustan Zinc Limited. The comprehensive order details are:

Nature of Tax Violation

The penalty relates to alleged contraventions in Input Tax Credit availment practices under specific GST provisions:

• Section 16 of CGST Act, 2017
• Section 20 of IGST Act, 2017
• Issues pertaining to financial years 2018-19 and 2019-20

The tax authorities have questioned the company's Input Tax Credit availment practices during these financial years.

Company Response and Appeal Strategy

Hindustan Zinc Limited has outlined its response approach to contest the penalty order. The subsidiary intends to file an appeal before the Appellate Authority within the time limit prescribed under the law. The company expressed confidence in achieving a favorable outcome through the appellate process.

Financial Impact Assessment

Regarding potential financial implications, Hindustan Zinc Limited stated that considering the merits of the case, it does not expect the order to have any material financial impact on the company. Both HZL and parent company Vedanta appear confident in their position for the appeal process.

The disclosure documents are available on stock exchange websites at www.bseindia.com and www.nseindia.com , as well as on HZL's website at www.hzlindia.com .