Lemon Tree Hotels Subsidiary Faces Tax Dispute Resolution, Company Plans Registered Office Relocation
Lemon Tree Hotels' subsidiary, Hyacinth Hotels, received a Delhi High Court order regarding a tax dispute with the Municipal Corporation of Delhi. The company states no material financial impact and is considering legal options. Separately, Lemon Tree's Board approved a proposal to relocate the registered office from Delhi to Haryana, subject to shareholder and statutory approvals.

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Lemon Tree Hotels Limited , a prominent player in the Indian hospitality sector, has recently made two significant announcements that could impact its operations and corporate structure.
High Court Order on Municipal Tax Dispute
Hyacinth Hotels Private Limited, a subsidiary of Lemon Tree Hotels, has received an order from the Delhi High Court regarding a long-standing tax dispute with the Municipal Corporation of Delhi (MCD). The case stems from an assessment order dated December 23, 2013, which demanded Rs. 68.20 lakh in taxes for the period 2009-10 to 2013-14.
The Delhi High Court pronounced its judgment on September 12, disposing of the writ petition filed by Hyacinth Hotels. The subsidiary received the court order on September 16. In response to this development, Lemon Tree Hotels has stated that there is no material impact on its financial operations. However, Hyacinth Hotels is currently evaluating available legal remedies and intends to take appropriate legal action in due course.
Proposed Relocation of Registered Office
In a separate development, the Board of Directors of Lemon Tree Hotels Limited, in a meeting held on September 17, approved a proposal to shift the company's registered office. The plan involves moving the registered office from the National Capital Territory of Delhi to the State of Haryana.
This decision will necessitate a consequential alteration of the Registered Office clause in the company's Memorandum of Association. It's important to note that this change is subject to shareholder approval and other appropriate statutory approvals.
Implications and Next Steps
While the tax dispute resolution for its subsidiary Hyacinth Hotels is ongoing, Lemon Tree Hotels maintains that it does not expect any material financial impact from this issue. The company's decision to relocate its registered office, however, could have operational and administrative implications.
Shareholders and stakeholders should stay tuned for further updates, as both the tax dispute resolution and the office relocation process unfold. The company is expected to provide more details on the office relocation plan, including the rationale behind the move and its potential benefits, in the coming weeks.
Lemon Tree Hotels continues to navigate these corporate and legal challenges while maintaining its focus on its core hospitality business. The outcomes of these developments will be closely watched by investors and industry observers alike.
Historical Stock Returns for Lemon Tree Hotels
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
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-1.34% | +0.56% | +13.63% | +35.26% | +32.82% | +504.63% |