HGS receives interim relief from Bombay High Court on GAAR direction
Hinduja Global Solutions Limited (HGS) received interim relief from the Bombay High Court regarding a GAAR direction concerning the demerger of NXTDigital's business. The court admitted HGS's writ petition and granted a stay on the GAAR Panel's direction. The matter will be further heard in January 2026. No adverse financial impact is reported.
The interim relief is positive, but the matter is still pending further hearing, indicating a potential for future impact. The current lack of adverse financial impact mitigates the immediate impact.
The company received a favorable interim order from the High Court, which includes a stay on the GAAR direction, providing significant relief.
Hinduja Global Solutions Limited (HGS) has received interim relief from the Hon'ble High Court of Judicature at Bombay regarding a direction from the Secretariat, Approving Panel under General Anti-Avoidance Rules (GAAR) for AY 2022-23 & AY 2023-24. This direction had characterized the tax treatment under the demerger of NXTDigital's Digital, Media and Communication Business Undertaking into HGSL as an “impermissible avoidance arrangement”.
The Company had challenged this direction by filing a writ petition. The Hon'ble Bombay High Court heard the petition on December 19, 2025, and admitted the petition. In the interim, the court has granted a stay on the implementation of the GAAR Panel's direction, providing interim relief to HGS.
The matter is scheduled for further hearing in January 2026. HGS has been responding to notices from Income Tax authorities for AYs 2021-22 to 2023-24 and taking appropriate legal steps. As of now, there is no adverse financial impact on the Company from these matters. This disclosure is made under Regulation 30 of the SEBI LODR.
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