In early trade on October 16, Godrej Properties witnessed a marginal drop in its shares as its subsidiary, Godrej Redevelopers (Mumbai) Private Limited (GRMPL), grappled with GST demand and penalty notices.
At 9:22 am, the company's stock was trading at Rs 1,677.60, marking a decrease of Rs 10.05 or 0.60 percent on the Bombay Stock Exchange (BSE).
Subsidiary GRMPL, on October 13, received a substantial GST demand notice amounting to Rs 48,31,06,179, accompanied by accrued interest and an equal penalty under Section 122(2)(b) of the Central Goods and Services Tax Act, 2017 (CGST Act 2017), as reported in the company's official exchange filing.
This demand notice, dated October 9, pertains to an alleged non-payment of GST linked to one of GRMPL's projects in Mumbai. The company has conveyed its intention to challenge the order through appropriate legal channels, asserting that it will not materially impact its financials, operations, or other activities.
In a related development last week, Godrej Properties announced the inauguration of Taj The Trees, an upscale hotel situated within their flagship project, "The Trees" in Vikhroli, Mumbai. The hotel is entirely owned by Godrej Properties and will be overseen by the Indian Hotel Companies Limited (IHCL), operating as a luxury Taj hotel.
In September, Godrej Properties made headlines by acquiring a sizable land parcel spanning approximately 109 acres in Nagpur. The development plans for this land primarily include the creation of plotted residential units, with an estimated saleable area of 2.2 million square feet, according to regulatory filings.
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