Sunteck Realty Ltd was jolted by a ₹59.44‑crore GST show‑cause notice, pushing its BSE price down 0.67% to ₹282.25.
The notice, issued under Section 73 of the GST Act, flags tax liability on the procurement of Transferable Development Rights (TDR) from the open market—a sum of ₹59,43,79,402 that the company claims is twice the actual amount.
Sunteck, citing its filing with the BSE, says TDR transactions fall outside the scope of GST, as they do not constitute a supply of goods or services, and it will file a reply to the Deputy Commissioner of State Tax in Mumbai.
The real‑estate sector has seen similar probes, with peers like Sun Life and L&T Realty seeing their shares slip 1–2% after regulatory notices; Sunteck’s 0.67% dip is modest in that context.
Looking ahead, the company has not altered its operational plans and remains on track for FY24, but investors will monitor the audit outcome and any potential adjustments to its valuation multiples.