Mawana Sugars Limited has informed the Exchange regarding 'Disclosure/Intimation under Regulation 30 of SEBI (LODR) Regulations 2015'.
MAWANASUG · price
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Mawana Sugars has disclosed that the Regional Provident Fund Commissioner (RPFC), Meerut, has passed an order against the Titawi Sugar Complex (TSC) unit, which the company had sold to Indian Potash Limited (IPL) in November 2016 under a Business Transfer Agreement (BTA). The order relates to alleged delay in encashment of PF securities and transfer of proceeds upon loss of the PF Trust's 'exempted status', for the period before the BTA. Damages of Rs. 1.33 crore under Section 14B and interest of Rs. 27.7 lakh under Section 7Q have been imposed, taking the total potential liability to about Rs. 1.62 crore. As per the BTA, any prior-period liability that crystallises will fall on Mawana Sugars.
No liability has crystallised yet as the matter is sub-judice. IPL has obtained an interim stay on the damages order from CGIT/EPFAT, Kanpur on May 2, 2025, and also challenged the interest portion before the Allahabad High Court, which limits immediate financial risk for shareholders though a contingent liability of around Rs. 1.62 crore exists if the courts ultimately rule against the company.