Nature of the Event
The company received a penalty notice from the Executive Engineer, Electricity Distribution Division, Paschimanchal Vidyut Vitran Nigam Limited (PVVNL), Sikandrabad, District Bulandshahr, Uttar Pradesh.
The notice, dated June 29, 2026, and bearing Letter No. 2127, levies a penalty of ₹52,17,724 (Fifty-Two Lakh Seventeen Thousand Seven Hundred Twenty-Four Rupees).
The penalty is in relation to an alleged delayed renewal/submission of Bank Guarantees towards an Additional Security Deposit.
Company's Stance and Actions
The company has disputed the alleged penalty. It is of the view that the requisite Bank Guarantees have already been renewed/submitted and the underlying requirement stands duly complied with.
The company states that the alleged penalty was a result of delays by the electricity distribution company itself in:
1. Conveying the amount of guarantee required.
2. Providing approval for a change of the guarantee issuing bank.
The company is in the process of making a suitable representation/appeal and is exploring legal remedies against this notice.
Financial and Operational Impact
As per the disclosure, there is no impact on the operations or other activities of the company.
The financial impact, if any, is explicitly stated to be limited to the amount of the penalty imposed, i.e., ₹52,17,724. This financial impact is contingent upon and subject to the outcome of the company's representation, appeal, and any subsequent legal proceedings.