Mawana Sugars Limited has informed the Exchange about General Updates
MAWANASUG · price
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Mawana Sugars' Nanglamal Sugar Complex unit has received a letter dated July 9, 2025 from the Office of Assistant Excise Commissioner, Meerut, asking it to deposit import and export pass fees on Denatured Spirit, Special Denatured Spirit, and Denatured Power Alcohol for the period from 2018-19 onwards. These fees were earlier deferred by the State Government of Uttar Pradesh pending a Supreme Court case on the same subject, which was decided on October 23, 2024, prompting the state to withdraw its deferment order. The total demand amount is Rs. 9.50 crore (Rs. 9,49,96,000). The company is treating this as a contingent liability because the industry association has obtained a legal opinion from a retired Allahabad High Court judge stating the state cannot demand past duties without fresh legislation. Mawana plans to take further legal action based on this advice and will disclose it as a contingent liability note in its June 2025 quarterly results.
A potential liability of Rs. 9.50 crore has been flagged, but since the company is contesting it and treating it as contingent, it should not immediately hit earnings. Shareholders should watch for legal developments and any escalation into actual payment or loss.