Shemaroo Entertainment Faces Over Rs. 60 crore Demand, Court Grants Interim Relief

Shemaroo Entertainment Faces Over Rs. 60 crore Demand, Court Grants Interim Relief

Shemaroo Entertainment Ltd, a major Indian media and entertainment conglomerate, recently issued a disclosure, addressed to BSE Limited and the National Stock Exchange of India Limited, regarding receipt of an interim order.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company said that on February 13, 2026, the court passed an interim order in the case that was already disclosed earlier. The Court has directed that no further steps or actions should be taken based on the disputed show cause notice or order until the Court announces its final decision in the matter.

The company further added that the court has also asked for demand and order recovery of allegedly inadmissible Input Tax Credit (ITC) amounting to Rs. 70.26 crores with interest at the applicable rate and a penalty equal to the tax amount under Section 74(1) of the CGST Act, 2017, read with Section 20 of the IGST Act, 2017.

Further, a separate penalty of Rs. 63.35 crores has been imposed under Sections 122(1)(ii) & (x) 122(2)(b) of the CGST Act, 2017, read with Section 20 of the IGST Act, 2017. Moreover, penalties of Rs. 133.61 crores each have been imposed on the Joint Managing Director, Chief Executive Officer, and Chief Financial Officer of the company under Section 122(1A) of the CGST Act, 2017, and the MGST Act, 2017.

The company said that because the Hon’ble High Court has given temporary relief, no strict or forceful action can be taken right now based on the disputed proceedings. However, it is still reviewing the situation and will take the necessary legal steps in the future.