Devyani International Limited announced that its wholly-owned subsidiary, Sky Gate Hospitality Private Limited, received a Demand Order from the Income Tax Department concerning Assessment Year 2024-25. The order relates to alleged excess premium on share issuance during FY 2023-24, totaling INR 59.52 Million. The parent company affirms there is no material impact on its financials or operations, and necessary appeal steps are being evaluated.
Receipt of Regulatory Communication
Devyani International Limited has formally disclosed the receipt of an order concerning one of its wholly-owned subsidiaries, Sky Gate Hospitality Private Limited (“Sky Gate”). This communication was received on March 25, 2026, from the Income Tax Department’s Assessment Unit.
Details of the Demand Order
The action taken involves the receipt of a demand order under section 143(3) of the Income-tax Act, 1961, pertaining to the Assessment Year 2024-25. The core issue detailed in the order relates to the alleged excess premium charged on the issuance of shares by Sky Gate during the financial year 2023-24. The total demand specified amounts to INR 59.52 Million.
Impact Assessment and Next Steps
The management of Devyani International Limited has stated clearly that there is no material impact resulting from this order on the overall financial, operational, or other activities of the listed entity. Sky Gate is currently in the process of thoroughly evaluating the Demand Order. The subsidiary will subsequently take all necessary steps available under applicable law, which includes the potential filing of an appeal before the appropriate Appellate Authority.
Source: BSE
