NCLAT dismissed appeal, upheld ₹44,25,569 CCI penalty; company moves Supreme Court

NCLAT dismissed the company's appeal on September 23, 2025 and upheld CCI's April 4, 2022 order with a penalty of ₹44,25,569.

Fri 2 Oct 2026

CCI penalty upheld by NCLAT

₹44,25,569

NCLAT order date

September 23, 2025

CCI order date

April 4, 2022

Supreme Court appeal date

December 12, 2025

Civil Appeal Diary No.

62482/2025

What the company has disclosed

• The Hon'ble National Company Law Appellate Tribunal (NCLAT), New Delhi, by its order dated September 23, 2025, dismissed the appeal preferred by the company and upheld the order passed by the Competition Commission of India (CCI).
• The CCI order, dated April 4, 2022, imposed a penalty of ₹44,25,569 on the company in proceedings concerning historical soil-testing tenders.
• The company states the NCLAT order did not enhance the quantum of the penalty, and did not impose any additional monetary penalty or any separate financial liability over and above the penalty imposed by the CCI.

What happened after the order

• Being aggrieved by the NCLAT order, the company preferred an appeal before the Hon'ble Supreme Court of India on December 12, 2025 and also shared an application seeking stay of the order.
• Civil Appeal Diary No.: 62482/2025

The company's explanation for the timing of the disclosure

• The underlying CCI proceedings, the CCI order dated April 4, 2022, the penalty and the appeal before the NCLAT had been disclosed in the company's Red Herring Prospectus issued prior to listing.
• The equity shares of the company were listed on BSE Limited on September 12, 2025, and the NCLAT order was passed shortly thereafter on September 23, 2025.
• The company states it considered the NCLAT order to be a subsequent development in continuation of proceedings already disclosed in the RHP, and that a separate disclosure was not made at that time.
• The company states the omission was inadvertent and that there was no intention to suppress, conceal or withhold the underlying proceedings, the penalty or the financial exposure.
• The disclosure follows a Warning-cum-Advisory Letter dated October 1, 2026 issued by SEBI. The company states it has strengthened its internal compliance and escalation mechanism for monitoring judicial, regulatory and statutory proceedings.

Background of the proceedings

• The matter arose from a complaint alleging bid-rigging in soil sample testing tenders invited by the Department of Agriculture, Government of Uttar Pradesh.
• The complaint related to two e-tenders for the Moradabad and Bareilly regions.
• The CCI directed an investigation, and the investigation report covered 9 tenders across divisions such as Moradabad, Bareilly, Jhansi, Saharanpur, Meerut and Aligarh.
• The CCI held that the appellants, along with other bidders, had contravened Sections 3(3)(c) and 3(3)(d) read with Section 3(1) of the Competition Act, 2002.

Impact stated by the company

• The financial implication arising from the proceedings is stated to be limited to the penalty of ₹44,25,569, which was already imposed by the CCI and disclosed in the RHP.
• The company states the order did not result in any suspension, debarment, disqualification, closure of operations, restriction on the company's business activities or disruption of its ongoing operations.
• Apart from the penalty, the company states the NCLAT order has not resulted in any additional material adverse financial or operational impact.

Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.