Neogen Chemicals Limited has disclosed the receipt of an order from the Office of the Commissioner of Customs, Raigad, dated February 9, 2026. The order imposes a total demand, fine, and penalty amounting to ₹11,554,589 related to non-fulfillment of export obligations under an Advance Authorisation for FY 2017-18 and FY 2018-19. The company is currently analyzing the details and plans to take necessary actions, confirming no material financial impact beyond the ordered amounts.
Regulatory Disclosure on Customs Order
Neogen Chemicals Limited informed the stock exchanges regarding an official order received from the Office of the Commissioner of Customs (NS-II), Jawaharlal Nehru Custom House, Raigad, Maharashtra. The order, dated February 9, 2026, and received on February 10, 2026, levies a demand, fine, and penalty against the company.
Details of Alleged Contravention
The penalty stems from the Non-fulfillment of export obligation through physical exports and the pre-import condition specified under Custom Notification no 18/2015, along with the terms of an Advance Authorisation utilized during the Financial Years FY 17-18 and FY 18-19.
Monetary Impositions
The order details the following monetary liabilities:
- Recovery of the custom duty foregone, including applicable interest: ₹77,54,589/-
- Redemption Fine under Section 125 of the Customs Act, 1962: ₹38,00,000/-
- Penalty under Section 112 (a) of the Customs Act, 1962: ₹7,75,000/-
Company Response and Financial Impact
The Company is currently engaged in analyzing the case and confirms that it will take appropriate actions, potentially including filing an appeal before the relevant Appellate/Judicial Authority, in due course. Management explicitly stated that there is no material impact on the company’s financial or operational activities, other than the specific amounts detailed in the order.
Source: BSE
