Mumbai, March 26 Nestle India Limited on Wednesday announced that it has been hit with a tax penalty of Rs 69.45 lakh after the Appellate Authority upheld an earlier order issued under the Customs Act, 1962.
The penalty arose from a customs duty dispute, as the company had initially appealed against the Deputy Commissioner of Customs' decision.
However, the appeal was rejected, confirming the demand for customs duty, interest, and an equal penalty amount.
In a filing to the stock exchange, Nestle India stated that it had received the penalty order under Section 28 (4) read with Section 28AA of the Customs Act. Despite its challenge, the ruling went in favour of the Revenue Department.
"There is no material impact on financials, operations or other activities of the company on account of the order mentioned above. The company will explore various options to challenge the above order," the company said in its filing.
Shares of Nestle India closed at Rs 2,240.10 apiece on the Bombay Stock Exchange (BSE) on Wednesday.
In a separate development, the Securities and Exchange Board of India (SEBI) recently issued a cautionary letter to Nestle India regarding an alleged violation of insider trading regulations by a senior official.
The market regulator sent the warning to Nestle India’s Compliance Officer (CCO) through its Deputy General Manager.
The company confirmed in a stock exchange filing that it had received SEBI’s letter on March 6, 2025.
The violation was linked to a "contra trade" carried out by a designated person within the company. In such cases, an insider buys or sells shares within six months of a previous transaction in the same security, aiming for short-term gains.
SEBI regulations prohibit this practice to prevent the misuse of unpublished price-sensitive information.
Despite the warning, Nestle India clarified that the matter did not have any material impact on its financial or operational activities.
Meanwhile, Nestle India is planning a slight price increase on its products to manage rising costs of coffee, cocoa, and edible oil.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor