Lemon Tree Hotels: Subsidiary Receives Penalty Notice from ESI Corporation

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Mumbai, January 31, 2025Lemon Tree Hotels Limited (NSE: LEMONTREE, BSE: 541233) has disclosed that its material subsidiary, M/s Berggruen Hotels Private Limited, has received a penalty notice from the Employees State Insurance Corporation (ESIC), Regional Office (SRO-Marol), Andheri, Mumbai.

Regulatory Notice and Penalty Details

The penalty notice, received on January 31, 2025, has been issued by the Office of the Recovery Officer, ESIC, demanding interest of ₹3,191 and penalty of ₹3,509 under Sections 39(5) and 85(B) of the Employees State Insurance Act, 1948.

Impact on Company

The company has confirmed that this penalty does not have a material impact on its financials, operations, or business activities.

Company Statement

Kapil Sharma, Chief Financial Officer of Lemon Tree Hotels Limited, stated in the regulatory filing that the company is complying with disclosure requirements under SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, and has informed the stock exchanges accordingly.

Market Outlook

While the financial impact of this penalty is negligible, Lemon Tree Hotels’ investors will be monitoring any further regulatory developments. The company remains a key player in India’s mid-market hospitality segment, with ongoing expansion strategies across domestic and international markets.
 
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