Sai Life Sciences Limited has received warning letters from both BSE and NSE for failing to hold mandatory Stakeholders' Relationship Committee (SRC) meetings during the financial year 2024-25. The exchanges issued the warning letters on January 06, 2026 and January 07, 2026 respectively, highlighting non-compliance with regulatory requirements.

Regulatory Violation Details

The warning letters specifically address the company's non-compliance with Regulation 20(3A) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates that the Stakeholders' Relationship Committee shall meet at least once in a financial year. Both exchanges observed that no SRC meeting was conducted during the financial year ended March 31, 2025.

Company's Clarification

Sai Life Sciences had previously addressed this matter when NSE raised a query on May 21, 2025. The company provided clarification explaining that its equity shares were listed on stock exchanges effective December 18, 2024. Due to the short duration between the listing date and the financial year closure (December 18, 2024 to March 31, 2025), there were no urgent agenda items requiring presentation to the SRC during this period.

The company emphasized that the absence of SRC meetings was due to the brief operational window following its recent listing, rather than any deliberate non-compliance with regulatory requirements.

Exchange Actions and Requirements

Both BSE and NSE have taken a serious view of this non-compliance and issued formal warnings to the company. The exchanges have mandated specific corrective actions:

• Dissemination of warning letters on all stock exchanges where the company is listed
• Presentation of warning letters before the Board of Directors
• Implementation of corrective measures to prevent future lapses
• Strict adherence to all applicable exchange circulars and communications

The exchanges have warned that any future deviations will be viewed with utmost seriousness and may attract appropriate regulatory action.

Impact Assessment

According to the company's disclosure under Regulation 30 of SEBI LODR, there is no material impact on the financial, operational, or other activities of the company resulting from these warning letters. The company has reaffirmed its commitment to maintaining the highest standards of corporate governance and regulatory compliance.

Sai Life Sciences has assured stakeholders of its continued commitment to comply with all applicable SEBI regulations and listing requirements going forward. The company's response demonstrates its proactive approach to addressing regulatory concerns while maintaining transparency with investors and regulatory authorities.

Sai Life Sciences Limited , a prominent player in the pharmaceutical industry, is now facing a fourth significant tax demand from authorities, further escalating its ongoing GST-related disputes. The latest development brings the company's total tax demands to over ₹86 crores across multiple cases.

Latest GST Penalty Order from Hyderabad

On December 30, 2025, Sai Life Sciences received a new GST order from the Additional Commissioner, Ranga Reddy GST Commissionerate, Hyderabad. The order was passed under Section 74 of the Central Goods and Services Tax Act, 2017 and Telangana Goods and Services Tax Act, 2017 read with Section 20 of the Integrated Goods and Services Tax Act, 2017.

The demand relates to alleged excess availment of Input Tax Credit and alleged differences between B2B supply with Sale/Purchase register updated on the government portal for the financial years 2018-19 to 2021-22.

Previous GST Demand from Bidar Authority

Earlier in December 2025, the company had received a GST demand order from the Deputy Commissioner of Commercial Taxes (Audit), Bidar, totaling ₹33.86 crores.

This demand pertained to alleged excess availment of Input Tax Credit in GSTR-3B compared to what was available in GSTR-2A for the financial year 2021-22.

Karnataka Tax Authority Demand

The Joint Commissioner of Commercial Taxes in Karnataka had issued an order demanding ₹36.68 crores from the company for alleged non-payment of taxes on intermediary services received from its US subsidiary.

This demand covered the period from July 2017 to March 2022, relating to services received from Sai Life Sciences Inc., USA, under the reverse charge mechanism.

Additional GST Demand

Sai Life Sciences had also received another GST demand order totaling ₹10.67 crores, including interest and penalties, for alleged excess Input Tax Credit availment and discrepancies in B2B supply records for fiscal year 2020-21.

Company's Consistent Response Strategy

Sai Life Sciences has maintained its stance of appealing all GST demand orders. Regarding the latest penalty demand, the company stated that based on its assessment, an appeal will be filed. The company remains hopeful of a favorable outcome at the appellate level and does not reasonably expect the order to have any material financial impact.

Updated Cumulative Impact

With four separate GST demands now totaling over ₹86 crores, Sai Life Sciences faces intensified regulatory scrutiny across multiple jurisdictions.

For investors and stakeholders, these developments highlight the complex nature of GST compliance, particularly regarding Input Tax Credit claims and international transactions. The outcomes of these appeals could set important precedents for the pharmaceutical sector and companies with similar operational structures.