The Sandur Manganese & Iron Ores Limited announced that its material subsidiary, Royal Sandur Metals Private Limited (formerly Arjas Steel Private Limited), has received a penalty order amounting to ₹12 lakh. The order, issued by the Office of the Principal Commissioner of Customs, Chennai-III, relates to the non-payment of export duty on goods supplied by the subsidiary. The company stated that there is no material impact on its financial or operational activities.
Subsidiary Faces Customs Penalty
The Sandur Manganese & Iron Ores Limited has disclosed that its material subsidiary, Royal Sandur Metals Private Limited (formerly Arjas Steel Private Limited), has been issued a penalty order for ₹12 lakh. This action stems from alleged violations related to export duty payments.
Details of the Penalty Order
The penalty was imposed by the Office of the Principal Commissioner of Customs, Chennai-III. The order, dated 8 September 2026, cites the non-payment of export duty by Sundaram Fasteners Limited (SEZ unit) on export goods procured from Royal Sandur Metals Private Limited. The period in question for these transactions is from 22 May 2022 to 18 November 2022, which predates the acquisition of Royal Sandur Metals Private Limited by The Sandur Manganese & Iron Ores Limited.
Impact and Next Steps
The company has clarified that this penalty is primarily on account of export duty leviable on goods supplied as DTA to the SEZ unit, which was reportedly not paid by the SEZ unit. Importantly, The Sandur Manganese & Iron Ores Limited stated that there is no material impact on the financial or operational activities of the listed entity. Royal Sandur Metals Private Limited is currently reviewing the order and assessing its options for further legal recourse.
Source: BSE
