Swaraj Engines Limited has received a GST demand order imposing a penalty of ₹9,55,300.00 from tax authorities in Punjab. The company disclosed this development under Regulation 30 of SEBI listing requirements on December 31, 2025.

GST Penalty Details

The penalty has been imposed by the Office of Assistant Commissioner of State Tax-cum-Proper Officer, S.A.S. Nagar, Punjab under section 73 of PGST/CGST Act, 2017. The violations relate to GST credit issues during Financial Year 2021-22.

Alleged Violations

The tax authorities have identified three specific areas of alleged non-compliance during Financial Year 2021-22:

• ITC on Cancelled Dealers: Input Tax Credit claimed on purchases from dealers whose registrations were subsequently cancelled
• Ineligible ITC Claims: Tax credits claimed under section 17(5) that were not eligible for claim
• Place of Supply Errors: Credits wrongly availed due to incorrect place of supply information provided by suppliers

Company's Response Strategy

Swaraj Engines has outlined its approach to address the penalty order. The company plans to file an appeal against the demand order and has expressed confidence in achieving a favorable outcome at the appellate level.

Regulatory Compliance

The disclosure was made in compliance with SEBI regulations, specifically under Clause 20 of Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided comprehensive details as required under the regulatory framework, including the nature of violations, authority details, and potential financial impact assessment.

Swaraj Engines Limited has announced the allotment of equity shares to its employees under the company's Employee Stock Option Scheme-2015. The allotment was approved through a circular resolution by the Nomination and Remuneration Committee on December 19, 2025.

Share Allotment Details

The company has allotted shares to eligible employees who exercised their stock options under the established ESOP framework. The allotment demonstrates the company's commitment to employee participation in its growth through equity ownership.

Regulatory Compliance

Swaraj Engines Limited has informed both BSE Limited and National Stock Exchange of India Limited about this share allotment in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations. The company communicated the allotment details to the respective listing departments of both exchanges.

Employee Stock Option Scheme

The Employee Stock Option Scheme-2015 allows eligible employees to acquire equity shares of the company, aligning their interests with shareholders and providing them with an opportunity to participate in the company's long-term value creation. The recent allotment represents the exercise of options by employees who met the eligibility criteria under the scheme.

The share allotment was processed for employees who exercised their stock options, reflecting the ongoing implementation of the company's employee incentive program established in 2015.