Mahindra Lifespace Developers Limited has received an order copy from the Office of the Deputy Commissioner of State Tax, Mumbai- LTU-526, Mumbai-LTU-3, Southwest, Maharashtra dated 18th April 2024 imposing a penalty of INR 12,878,507 for the financial year 2018-2019. The Order has been issued under Section 73 of Maharashtra Goods and Services Act, 2017. The Order has been issued due to alleged non-compliances with applicable provisions regarding excess input tax credit claimed, disallowance of credit notes pertaining to pre-GST era, less payment of tax and advance related disagreement under Section 73 of Maharashtra Goods and Services Act, 2017.

Based on the Company's assessment and interpretation of prevailing law, the Company is hopeful of a favourable outcome at next adjudicating authority levels and does not reasonably expect the said order to have any material impact on the Company.