Penalty notice received from PVVNL electricity discom for delayed bank guarantees

Kothari Fermentation received a penalty notice of about Rs 52.18 lakh from Paschimanchal Vidyut Vitran Nigam (PVVNL), a UP electricity distributor, for alleged delay in renewing bank guarantees as additional security deposit. The notice was issued on June 29, 2026. The company has disputed the penalty, stating the guarantees were already renewed and blaming PVVNL for delays in conveying the required amount and approving the change of guarantee issuing bank. No operational impact is expected, and financial impact is limited to the penalty amount, subject to the outcome of the company appeal.