Lemon Tree Hotels challenges tax demand for subsidiary

Lemon Tree Hotels Limited announced that its material subsidiary, Berggruen Hotels Private Limited (BHPL), has received a revised tax demand totaling INR 42,92,353. This demand, issued by the Office of Commercial Tax Officer (Audit), Koramangala, Bangalore, includes tax of INR 18,07,307, interest of INR 23,04,316, and a penalty of INR 1,80,730.

The order, received on November 29, 2025, pertains to the 2018-19 period and cites alleged violations under Section 73 of the CGST Act / KGST Act, 2017, read with Section 20 of the IGST Act, 2017. Lemon Tree Hotels stated that, based on its assessment, the demand is not maintainable and it is evaluating all options, including filing an appeal.

The company anticipates no material impact on its financial operations beyond the specified demand amount. This disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.