Fortis Malar Hospitals Ltd received show cause notices from Tamil Nadu State Tax Authorities relating to the April 2018-March 2019 period. Initial tax demand of over ₹41.76 crore was substantially dropped, with the final confirmed demand standing at ₹1.92 lakh, including interest and penalties.
Fortis Malar Hospitals Limited disclosed that it received show cause notices issued by the Tamil Nadu State Tax Officer under the Chengalpattu Intelligence Division concerning the fiscal period from April 2018 to March 2019. The initial demand raised was INR 4,176.41 lakhs (over ₹41.76 crore).
After a detailed submission and response, the tax authorities have substantially reduced the payable amount to INR 1.14 lakhs as tax, along with an interest component of INR 0.42 lakhs and a penalty of INR 0.36 lakhs. The balance amount originally demanded was dropped as the authorities found the hospital’s explanations satisfactory.
This disclosure has been made in compliance with SEBI Listing Obligations and Disclosure Requirements. The reduction signals positive resolution of the tax dispute, easing investor concerns and reflecting diligent compliance efforts by the company.
Stakeholders are advised to monitor ongoing regulatory interactions but view this significantly reduced final demand positively.
Key Highlights
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Fortis Malar Hospitals received show cause notice for tax demand related to 2018-19.
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Initial demand over ₹41.76 crore was reduced to ₹1.92 lakh after the hospital’s response.
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Breakdown: ₹1.14 lakh tax, ₹0.42 lakh interest, ₹0.36 lakh penalty; balance amount dropped.
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Issued by Tamil Nadu State Tax Officer, Chengalpattu Intelligence Division.
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Disclosure made under SEBI regulations for market transparency.
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Company’s compliance and clarifications led to substantial demand reduction.
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Market and investors view outcome positively, reflecting strong regulatory communication.
Sources: ScanX.trade, StockInsights.ai, Economic Times Health, MoneyControl