HUHousing & Urban Development Corporation540530Regulatory penalty

Board notes exchange fines for June-quarter board, committee and quorum lapses; seeks waiver

The company has told the exchanges that its Board noted the fines levied for June-quarter compliance lapses and wants a waiver, saying director appointments rest with the Ministry.

By ScoutQuest · Thu 22 Oct 2026, 12:08 PM IST · 2 min read

Total fine payable

Rs. 1171740, including GST of Rs. 178740

Basic fine

Rs. 993000

GST on fine

Rs. 178740

What the company told the exchanges

The company placed before its Board the NSE letter and BSE email dated 25th August, 2026 levying fines for non-compliance with provisions on the composition of the Board and its committees and on quorum of meetings during the quarter ended 30th June, 2026, under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board, while noting the status of the levy, desired that continuous follow-up be made with the Ministry apprising it of the penalties, and that the exchanges be requested to waive the fine.

The company states it is a Government Company where the power to appoint Directors vests with the President of India, exercised through the Administrative Ministry. It says a request for appointment of the requisite Independent Directors has been made to the Ministry, and that since appointment of Directors is beyond the control of the company, the fines may be waived.

The fine, in numbers

• Basic fine across regulations: Rs. 993000
• GST at 18%: Rs. 178740
• Total fine payable, inclusive of GST: Rs. 1171740
• Regulation 17(1), board composition: Rs. 5000 per day x 91 days = Rs. 455000
• Regulation 18(1), audit committee: Rs. 2000 per day x 85 days = Rs. 170000
• Regulation 19(1)/19(2), nomination and remuneration committee: Rs. 2000 per day x 85 days = Rs. 170000
• Regulation 20(2)/(2A), stakeholder relationship committee: Rs. 2000 per day x 47 days = Rs. 94000
• Regulation 21(2), risk management committee: Rs. 2000 per day x 47 days = Rs. 94000
• Regulation 17(2A), quorum of Board meetings: Rs. 10000 per instance x 1 instance = Rs. 10000

What the exchange notices flag

• Payment is to be made within 15 days from the date of the notice.
• Failing payment, the exchange would initiate action related to freezing of the entire shareholding of the promoter in the company, as well as all other securities held in the demat account of the promoter.
• The notices state that a second consecutive quarter of non-compliance for Regulation 17(1), 18(1) and 27(2) would result in the company being transferred to the Z group and liable for suspension of trading of its equity shares.
• The fine amount keeps increasing every day until compliance is achieved.
• Compliance is a pre-requisite for applying for a waiver, and a non-refundable processing fee of Rs.10,000 plus 18% GST applies where the fine is more than Rs. 5,000 exclusive of GST.

What to watch

• Progress on the appointment of the Independent Directors requested from the Ministry, which the company links to the non-compliance.
• The outcome of the company's request to the exchanges for waiver of the fine.
• Any communication from the exchanges on the same subject for later quarters.

Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.

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