Kesar Enterprises Limited has announced the termination of a Memorandum of Understanding (MoU) for the sale of its sugar undertaking at Baheri, Uttar Pradesh. The termination is effective from October 31, 2026, due to the buyer’s failure to make stipulated payments. The company stated it intends to pursue legal action against the buyer and will re-evaluate options for the undertaking.
Kesar Enterprises Terminates Sugar Undertaking Sale
Kesar Enterprises Limited has officially terminated the Memorandum of Understanding (MoU) entered into with Avadh Foods and Multi Warehouse Private Limited for the sale of its sugar undertaking located in Baheri, District Bareilly, Uttar Pradesh. The agreement, which was structured as a slump sale of a going concern, has been terminated under Clause 21(c) of the MoU, effective from October 31, 2026.
Reason for Termination
The company cited the buyer’s failure to fulfill payment obligations within the agreed-upon timeframe as the primary reason for the termination. Despite receiving notice, the buyer did not cure the defaults. Consequently, the proposed sale of the sugar undertaking will not proceed, and ownership of the asset remains with Kesar Enterprises.
Future Course of Action
Kesar Enterprises Limited plans to initiate appropriate legal action against the buyer to seek remedies available under the MoU and applicable law. The company also indicated that it will continue to explore alternative options for the Baheri sugar undertaking. Any material developments regarding this matter will be disclosed to the Exchange in due course.
Source: BSE
