IL&FS Transportation Networks Limited has received a significant GST demand notice from Haryana tax authorities, marking another regulatory development for the infrastructure company. The notice pertains to alleged tax non-compliance for the Financial Year 2018-19.

GST Demand Notice Details

The company received a demand notice of ₹25.06 crores from the Deputy Commissioner of State Tax, Gurugram (East) under the Government of Haryana. The notice relates to alleged non-compliance for the Financial Year 2018-19.

Nature of Alleged Violation

The demand notice has been issued under the relevant sections of the GST Act. The violation relates to alleged non-payment of GST liability for the Financial Year 2018-19. The total amount of ₹25.06 crores likely represents the aggregate of the principal GST liability along with applicable interest and penalty components.

Company's Response and Impact Assessment

IL&FS Transportation Networks has indicated that it is currently reviewing the demand notice. The company will determine the appropriate course of action after a thorough assessment.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This disclosure ensures transparency regarding material developments that could potentially affect the company's operations or financial position.

The development adds to the regulatory matters that IL&FS Transportation Networks continues to navigate as it works through various compliance and operational challenges. The company's approach of reviewing the notice before determining next steps reflects a measured response to the tax authority's demands.

IL&FS Transportation Networks Limited (ITNL) has announced the completion of a significant corporate action, transferring its entire stake in Chenani Nashri Tunnelway Limited (CNTL) to Cube Highways and Infrastructure II Pte Ltd. This move marks a substantial development in ITNL's divestment strategy.

Transaction Details

The transaction, which was executed on November 20, involves the following key elements:

Impact on Corporate Structure

As a result of this transaction:

• CNTL has ceased to be a subsidiary of IL&FS Transportation Networks Limited.
• ITNL's nominee directors on CNTL's board have resigned.
• Cube Highways' nominees have been appointed as directors on CNTL's board.

Background of the Deal

The groundwork for this transaction was laid on March 21, when ITNL executed a Share Purchase Agreement (SPA) with Cube Highways. The completion of the deal was subject to various conditions, including approvals from the National Company Law Tribunal (NCLT) and other relevant authorities.

Financial Perspective

In the fiscal year 2017-18:

• CNTL's total revenue was Rs. 404.40 Crore.
• This represented 4.14% of ITNL's consolidated revenue of Rs. 9,778.92 Crore for that year.

Regulatory Compliance

ITNL has made this disclosure in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has confirmed that this transaction does not fall under related party transactions.

This divestment appears to be a strategic move by IL&FS Transportation Networks Limited, potentially aimed at restructuring its portfolio or improving its financial position. The substantial consideration involved underscores the significance of this transaction in the infrastructure sector.