Lemon Tree Hotels Receives Notices and Challans from Various Authorities

Lemon Tree Hotels Receives Notices and Challans from Various Authorities​

Lemon Tree Hotels Limited announced it and its subsidiaries have received several notices and challans from various authorities. The notifications, dated March 25, 2026, detail actions related to Employee State Insurance, groundwater usage, tax liabilities, and excise violations.

Employee State Insurance Corporation Notice

The company received a notice from the Employee State Insurance Corporation, Okhla, New Delhi, for a payment of Rs. 557 related to a violation of the ESI (General) Regulations, 1950. The notice was received on March 12, 2026. The company stated that the violation pertains to the payment of contributions within the stipulated timeframe.

Fleur Hotels Limited – Central Ground Water Board and CGST & CX

Fleur Hotels Limited, a material subsidiary company, received a challan from the Central Ground Water Board, Western Region, Jaipur, Rajasthan, for penalty charges of Rs. 1,00,000 due to the non-submission of a Self Compliance Report. This challan was received on February 19, 2026.

Separately, Fleur Hotels Limited received an order from the Office of the Principal Commissioner of CGST & CX, Mumbai-East, for recovery of a tax liability of Rs. 4,07,18,442 under Section 74(9) of the CGST Act, 2017, along with Rs. 17,61,912 under Section 74A(6) of the CGST Act, 2017, interest, and penalties totaling Rs. 4,07,18,442 and Rs. 17,61,912. This order was received on March 25, 2026. The company believes this demand is not maintainable and is evaluating legal remedies.

Iora Hotels Private Limited – Central Ground Water Board

Iora Hotels Private Limited, another material subsidiary company, received a challan from the Central Ground Water Board, Central Region, Nagpur, Maharashtra, for penalty charges of Rs. 2,50,000 related to the non-installation/faulty digital water flow meter and non-maintenance of records. The challan was received on February 27, 2026.

Inovoa Hotels Private Limited – Excise Department

Inovoa Hotels Private Limited received a notice from the Office of Inspector of Excise Range -30 Mahadevapura, Urban, Bangalore, for a payment of Rs. 12,000 regarding a violation of Section 45 of the Karnataka Excise Act, 1965. The notice was received on February 27, 2026.

Lemon Tree Hotels stated that there is no material impact on financial operations beyond the amounts specified in the notices and challans.

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