UP Excise directs compounding payment of ₹10,00,000 over molasses storage capacity at Rajpura unit
Dhampur Sugar Mills has been directed by the UP Excise Department to pay a compounding amount of ₹10,00,000 for shortfall in prescribed molasses storage capacity at its Rajpura unit.
By ScoutQuest · · 1 min read
- Compounding amount
- ₹10,00,000 (Rupees Ten Lakh only)
- Communication date
- 14th October, 2026
- Reason
- shortfall in prescribed molasses storage capacity at the Rajpura unit
What the company informed the exchanges
The company has submitted details of a communication dated 14th October, 2026 received from the Office of the Molasses Controller and Excise Commissioner, Uttar Pradesh, Prayagraj (U.P. Excise Department), in relation to its Rajpura unit.
- The company has been directed to pay a compounding amount of ₹10,00,000 (Rupees Ten Lakh only)
- The direction relates to a shortfall in the prescribed molasses storage capacity at the Rajpura unit
- The communication was received by the company on 14th October, 2026
What the update says about the violation
The actual molasses storage capacity at the Rajpura unit of the company for sugar years 2021–22, 2022–23, 2024–25 and 2025–26 was lower than the storage capacity calculated as per excise/molasses control regulations.
What the company says about the impact
- The financial impact is limited to the extent of ₹10,00,000 (Rupees Ten Lakh only)
- There is no material impact on the financial, operation or other activities of the company
How a retail investor might read this
This is a disclosure of a regulatory direction to pay a compounding amount, along with the company's own stated assessment of its financial impact. The update puts the money outgo at ₹10,00,000 and describes the wider impact as not material, so the disclosure is essentially about the event being made public with its quantified cost.
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More numbers
- Compounding amount directed to be paid₹10,00,000
- Financial impact stated by the company₹10,00,000
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