Kalpataru Projects International Limited has received a penalty order from tax authorities in Dominica for delayed Value Added Tax (VAT) payments, according to a regulatory filing made under SEBI disclosure requirements.

Penalty Details and Timeline

The company's branch office in Commonwealth of Dominica received the penalty order on January 22, 2026 at approximately 10:27 P.M. (IST) from the Inland Revenue Division, Dominica. The penalty relates to VAT assessment delays for specific months in 2025.

Nature of Violation

The Inland Revenue Division imposed the penalty on grounds that the reporting and payment of VAT for April 2025 and May 2025 was delayed, with the actual payments made in June 2025. This delay in tax compliance resulted in the financial penalty being levied against the company's Dominica operations.

Company Response and Impact

Kalpataru Projects International has taken immediate action by filing an objection against the imposed penalty with the relevant authority. The company has assessed the financial impact and stated in its disclosure that the penalty does not have any significant impact on the company's overall operations.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company provided comprehensive details about the penalty, including the nature of violation, financial impact, and remedial actions taken.

The filing demonstrates the company's commitment to transparent reporting of material developments that could affect stakeholder interests, even when the financial impact is deemed non-significant to overall operations.

Kalpataru Projects International has successfully completed the sale of its entire equity stake in Vindhyachal Expressway Private Limited to growth market sustainable infrastructure investor Actis. The transaction, which was finalized on January 16, 2026, at 07:10 p.m. (IST), represents a significant milestone in the company's strategic divestment program.

Transaction Completion Details

The infrastructure development company has completed the divestment of its 100% equity stake in its wholly owned subsidiary at an enterprise value of approximately Rs. 775.00 crores, subject to necessary closing adjustments. The completion was formally disclosed through regulatory filings under Regulation 30 of SEBI LODR Regulations.

Project Overview

Vindhyachal Expressway Private Limited operates as a Special Purpose Vehicle undertaking a four-laning road project spanning 89.30 kilometers. The project connects the main city of Rewa and Hanumana on the border of Madhya Pradesh and Uttar Pradesh along national highway section NH-7.

Financial Impact

According to the regulatory disclosure, VEPL contributed approximately Rs. 85.07 crores in revenue, representing about 0.43% of consolidated revenue. The subsidiary had a net worth of approximately Rs. 144.55 crores as of March 31, 2024, constituting around 2.81% of the company's consolidated net worth.

Management Commentary

Manish Mohnot, MD & CEO of KPIL, described the completion as "a landmark event for KPIL." He emphasized that the strategic divestment of transmission assets and the current VEPL sale demonstrates the company's track record in developing, operating and successfully divesting long-term infrastructure assets. The divestments align with KPIL's strategy of optimizing value through disposal of non-core assets while continuing investment in core EPC business to accelerate growth and achieve targeted return ratios.

Advisory Teams

The transaction was supported by specialized advisory teams, with Equirus Capital Private Limited serving as Transaction Advisor and Khaitan & Co as Legal Advisors to KPIL. Anangram Partners provided legal advisory services to Actis for the deal completion.