Stanley Lifestyles Limited has announced the receipt of a Show Cause Notice from the Registrar of Companies, Bangalore, Ministry of Corporate Affairs, regarding alleged violations by Directors and Ex-Director of Sana Lifestyles Limited, a Step-Down Subsidiary.
The notice, received on August 18, 2025, pertains to non-compliance with Sections 188 and 184 of the Companies Act, 2013, concerning substantial related party transactions during FY 2020-21. It is alleged that these transactions were undertaken without fresh or omnibus Board approvals and with inadequate disclosure in AOC-2.
The authority has directed the submission of domestic transfer pricing audit reports and proof of arm's length basis. The expected financial implications for the Directors and Ex-Director of Sana Lifestyles Limited are as follows:
- Mrs. Shubha Sunil - ₹5,00,000 (Director)
- Mr. Sunil Suresh - ₹5,00,000 (Director)
- Mr. Aboothahir Khan Saleem - ₹5,00,000 (Ex Director)
No penalty has been imposed at this stage.
| Particulars | Description |
|---|---|
| Date of Receipt | 18-08-2025 |
| Details of Litigation | Violation of Sections 188 and 184 of the Companies Act, 2013 regarding related party transactions during FY 2020-21, without proper approvals and disclosures. |
| Expected Financial Implications | ₹5,00,000 each for Mrs. Shubha Sunil, Mr. Sunil Suresh, and Mr. Aboothahir Khan Saleem. |
| Quantum of Claims | NA |
The matter is currently under consideration, and the Step-Down Subsidiary is evaluating appropriate representations.
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