Legal notice from NARCL for debt restructuring default

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AI summary

Dharani Sugars received a legal notice from NARCL dated Feb 7, 2026 over non-compliance with the Master Restructuring Agreement (MRA) of May 24, 2024. Defaults cited include failure to allot 20 percent equity to NARCL, not maintaining INR 15 crore DSRA, INR 25 crore farmer dues corpus, and unpaid INR 10.48 crore due Dec 31, 2025. Plant operations have not restarted. One month to cure or NARCL will move Debt Recovery Tribunal for a Recovery Certificate.

Likely market impact

Serious debt default risk. Failure to cure within one month could trigger recovery proceedings and threaten solvency.