Tax Litigations

Except as disclosed below, there are no claims related to direct and indirect taxes, involving our Bank:

 

 

Nature of case Number of cases Amount involved (% in million)
Direct Tax 2 28.67"
Indirect Tax 1 487
* Refund amount of & 10.82 million determined for assessment year 2015-2016 has been adjusted against the disputed demand
for assessment year 2014-2015. Further, Bank has paid & 7.50 million in compliance of the order passed by the Principal
Commissioner of Income Tax on stay application filed by our Bank. The abovementioned amount is prior to the adjustment of
refund amount of 10.82 million and payment of & 7.50 million in compliance of the order.

 

 

 

 

 

 

Direct tax matters

As on date of this Prospectus, following direct tax matter against our Bank individually involves an amount exceeding
% 11.12 million.

An assessment order (“Assessment Order”) was passed against our Bank by the Deputy Commissioner of Income
Tax, Mumbai (“Deputy CIT”) under the Income Tax Act after issuing notices of demand to our Bank, in relation to
the returns filed by our Bank for the assessment year 2014-2015, alleging non-compliance with certain provisions of
the Income Tax Act, including inter alia in relation to income accrued from issue of shares taxable as income from
other sources, delayed payment towards provident fund and employee state insurance corporation, certain amounts
debited as expenditure on corporate social responsibility. Our Bank filed an appeal against the Assessment Order
before the Commissioner of Income Tax (Appeals), Mumbai (“CIT (A)”). Our Bank also filed an application before
the Principal Commissioner of Income Tax, Mumbai, requesting a stay on the recovery of outstanding demand and
was granted a stay on the recovery of outstanding demand, subject to the payment of 2 7.50 million (“Stay Order”).
The appeal against the Assessment Order was dismissed by the CIT (A) (“CIT Order”). Our Bank filed an appeal
before the Income Tax Appellate Tribunal, Mumbai (“Tribunal”) against the CIT Order (“Appeal”) and an
application requesting a stay on recovery of outstanding demand. The Tribunal granted a stay on recovery of
outstanding demand for a period of 180 days or till the date of the order passed by the Tribunal, whichever is earlier
(“Stay Order II”). The Appeal was allowed by the Tribunal. Further, in relation to one of the alleged non-compliances
with respect to income accrued from issue of shares taxable as income from other source, the Tribunal set aside the
issue to the file of the assessing officer to be decided afresh and as per law. The amount involved in the matter is =
24.44 million. The matter is currently pending.

Litigation by our Bank
Matters involving an amount above ¢ 11.12 million

As on the date of this Prospectus, there are no material outstanding litigation filed by our Bank which involve a
monetary liability of = 11.12 million or more, nor any outstanding litigation wherein monetary liability is not
quantifiable, whose outcome has a material bearing on the business, operations, performance, financial position or
reputation of our Bank. Other matters below such threshold include suits for recovery of debt and arbitration
proceedings in relation to repayment of loan amounts by our borrowers.

Criminal Litigation
As on the date of this Prospectus, following are the outstanding criminal litigation filed by Bank.

1. A criminal complaint has been filed by our Bank against Pradip Gundappa Kalshetty at the police station at
Kothrud, Pune, alleging inter alia, for wrongful loss caused to our Bank, criminal breach of trust and cheating.
The complaint has been filed alleging failure of repayment of the vehicle loan availed from our Bank and
selling crucial parts of the vehicles, hypothecated in favour of our Bank. The total amount involved in the
matter is = 3.60 million. The matter is currently pending.

2. A criminal complaint has been filed by our Bank against Haresh Shailesh Panchmatia, Daksha Haresh
Panchmatia and M/s. Aadhar Developers and Creative Group through its proprietor, Amol Chandrakant
Jadhav at the police station at Titwala, Kalyan Taluka, Thane, alleging inter alia for wrongful loss caused to
our Bank, criminal breach of trust, cheating and conspiracy. The complaint has been filed alleging failure in
completion of house for which housing loan availed from our Bank as per stipulated agreement. The amount
involved in the matter is = 2.59 million. The matter is currently pending.

3: A criminal complaint has been filed by our Bank against Vishwanath B. Pawar, Poonam Vishwanath Pawar
and M/S. S.M. Londhe Developers through its proprietor, Shashikesh Manik Londhe at the police station at
Bharti Vidyapeeth, Pune, alleging inter alia for wrongful loss caused to our Bank, criminal breach of trust,
cheating and conspiracy. The complaint has been filed alleging failure in completion of house for which

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