Axel Polymers Receives SEBI Show Cause Notice on GST Matter

Axel Polymers Ltd has received a Show Cause Notice (SCN) from the Securities and Exchange Board of India (SEBI) regarding alleged wrongful availment of input tax credit (GST). The notice, dated 11.09.2026, initiates adjudication proceedings under the SEBI Act, 1995, against the company, its non-independent directors, and other individuals. The alleged contravention pertains to the wrongful availment of input tax credit amounting to ₹31.57 crore without physical receipt of inward supplies and passing it on without actual supply of goods, as alleged by the Central GST & Central Excise, Vadodara-II. SEBI initiated its investigation based on this. The company states that the SCN does not quantify any monetary penalty, and the financial implications are currently unascertainable, pending the outcome of the proceedings. Routine operations are not impacted, and the company will inform the stock exchange of further developments.