Religare Enterprises' Subsidiary Faces Rs. 140.20 Crore Income Tax Demand

Religare Enterprises Ltd. has received communication from the Office of the Assistant Commissioner of Income-Tax, Central Circle 6(2) Mumbai, stating that Care Health Insurance Limited (CHIL), a material subsidiary of Religare Enterprise Limited, has been issued two Orders under Sections 147 and 143(3) of the Income-tax Act, 1961, for the Assessment Years 2023-24 and 2024-25, respectively. The Orders raise an Income-tax demand of Rs. 140.20 Crores (including interest). However, CHIL believes that the tax demand and applicable interest have been incorrectly computed. The company is in the process of filing a rectification application before the authority, and based on the advice of tax consultants, CHIL would file an appeal against the Order before an appropriate forum within the prescribed timelines. The financials of CHIL are consolidated with REL.