Subsidiary receives adjudication order on remuneration-disclosure lapse; exempted from penalty under IBC

Subsidiary ESL Steel received an adjudication order for alleged non-disclosure of the directors'-remuneration-to-median-employee pay ratio for FY 2015-16 to FY 2017-18.

Thu 1 Oct 2026

Adjudication Order Date

Adjudication Order dated August 27, 2026 under Section 454 of the Companies Act, 2013

Alleged Violation

Section 197(15) read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

Period Involved

FY 2015-16 to FY 2017-18

Penalty Exemption

ESL is exempted from penalty under Section 32A of the IBC

Status

the order concludes the proceedings

An order on past disclosure lapses

ESL Steel Limited, a subsidiary, has received an Adjudication Order dated August 27, 2026, received on September 30, 2026 at around 10:01 PM IST, under Section 454 of the Companies Act, 2013. It relates to a violation of Section 197(15) read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

What the alleged non-compliance was

• Non-disclosure of the ratio of directors' remuneration to median employee remuneration and other prescribed disclosures in the Board's Report / Corporate Governance Report.
• The matter relates to the financial years 2015-16 to 2017-18.
• The update states the matter pertains to the erstwhile management.

How the order reads

• ESL is exempted from penalty in terms of Section 32A of the Insolvency and Bankruptcy Code, 2016.
• The adjudication order concludes the adjudication proceedings.
• Ex-Director and Ex-KMPs have accepted the penalty as mentioned in the notices and undertake to remit the same as may be directed by the Hon'ble Adjudicating Officer.

What an investor can take away

• The order concerns remuneration and corporate-governance disclosures of a past period, running to FY 2017-18, and the update links it to the erstwhile management.
• No penalty is payable by ESL under this order, as it is exempted under Section 32A of the IBC.
• The penalty element in this order sits with ex-director and ex-KMPs, who have accepted it and undertaken to remit it as directed.
• ESL states that this order concludes the adjudication proceedings.

This is a regulatory update about a completed adjudication, shared through an exchange update.

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