Intimation for receipt of Order imposing fine/penalty by Office of the Commissioner of Customs NS-II, Nhava Sheva, Maharashtra
WABAG · price
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Awaiting price reaction for this filing.
VA Tech Wabag has received an order from the Commissioner of Customs (NS-II, Nhava Sheva) alleging incorrect availment of Duty Drawback under the Customs Act, 1962 on export of goods. The total demand includes an excess Duty Drawback of about ₹6.92 crore (₹60 lakh already paid in FY23), a penalty of ₹20.12 crore, and a redemption fine of ₹60.12 crore, aggregating roughly ₹87 crore. The company has stated it will pursue appropriate legal remedies against the order. The company has clarified that the demand does not have any material impact on its financial, operational or other activities. The order was received on August 25, 2025.
Although the aggregate demand is sizeable (over ₹87 crore including penalty and fine), the company is contesting the order and has stated it is not a material financial impact. Near-term sentiment may be mildly negative due to the regulatory action, but the stock reaction will depend on the outcome of the company's legal challenge.