Wockhardt Limited has received an adjudication order from the Commissioner of Customs imposing a total penalty of ₹111 crore. This includes a ₹5 crore penalty under Section 114(iii) of the Customs Act, 1962, and a ₹10 crore redemption fine for mis-declared Active Pharmaceutical Ingredients (API). An additional ₹1 crore penalty is levied on an officer. While the company disputes the order and plans an appeal, the penalties are expected to impact its financials.
Customs Adjudication Order Imposes Significant Penalties
Wockhardt Limited announced today that it is in receipt of an Adjudication Order passed by the Commissioner of Customs, Nhava Sheva-II, JNCH. The order imposes substantial penalties, impacting the company’s financial position, although the company is confident in challenging the ruling.
Details of the Penalty
The adjudication order includes the following penalties:
- A penalty of ₹5,00,00,000/- (Rupees Five Crore) under Section 114 (iii) of the Customs Act, 1962.
- A redemption fine of ₹10,00,00,000/- (Rupees Ten Crore) in lieu of confiscation of goods (API) which were mis-declared by the Company, under section 125 (1) of the Customs Act, 1962.
- A further penalty of ₹1,00,00,000/- (Rupees One Crore) is levied on Dr. Aravind Y Merwade, an officer of the Company, under Section 114 (iii) of the Customs Act, 1962, in connection with alleged mis-classification.
Company’s Stance and Appeal Plans
The penalties are levied in terms of Section 114(iii) read with section 125(1) of the Customs Act, 1962, and relate to the alleged mis-classification of an Active Pharmaceutical Ingredients (API) exported by the Company. Wockhardt Limited has expressed confidence in the merits of its case and is taking necessary steps to challenge the said order by way of an appeal before the appropriate authority. The company stated that, except for the monetary fine/penalty, the order would not have any impact on the financials, operations, or other activities of the Company.
Disclosure Compliance
This intimation is being provided pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The details required under SEBI Master Circular SEBI/HO/CFD/P0D2/CIR/P/0155 dated November 11, 2024, are enclosed as Annexure I. The disclosure will also be available on the Company’s Website at www.wockhardt.com. The delay in submission was due to an inadvertent administrative oversight, and the disclosure is being made upon realisation of the omission.
Source: BSE
