Religare Enterprises Limited (REL) announced that its material subsidiary, Care Health Insurance Limited (CHIL), received a stay order from the Hon’ble Bombay High Court on March 26, 2026. The stay concerns an order-in-original imposing a significant GST demand of Rs. 17,68,26,837, plus interest and penalties, for FY 2017-18 to 2023-24. The stay will remain in effect until the final disposal of the associated Writ Petition.
Legal Development Regarding Subsidiary GST Matter
Religare Enterprises Limited (REL) provided an update regarding its material subsidiary, Care Health Insurance Limited (CHIL), concerning a major tax proceeding. CHIL had previously received an order-in-original from the Assistant Commissioner of Goods And Services Tax, Faridabad, covering the SEZ matter for the period spanning July 2017 to March 2024.
Details of the Impugned Order
The original order imposed a significant GST demand, amounting to Rs. 17,68,26,837, along with applicable interest under Section 50 of the CGST Act, 2017, and Section 20 of the IGST Act, 2017. Furthermore, a penalty of Rs. 17,68,26,837 was imposed under Section 74 of the CGST Act, 2017. These demands relate to matters identified as industry-wide issues.
High Court Intervention and Stay Granted
In a crucial development, CHIL has secured interim relief. The Hon’ble Bombay High Court passed an order on March 26, 2026, granting a stay on the operation of the aforementioned impugned order. The company received official communication regarding this stay from its tax advisors on March 28, 2026, and subsequently informed the listed entity (REL) on March 30, 2026.
This stay order is effective until the final disposal of the Writ Petition filed by CHIL against the tax authority’s demand. The company confirmed that, at this stage, there is no impact on the financial, operational, or other activities of the listed entity that can be quantified in monetary terms.
Source: BSE
