GPCB Revokes Closure Direction for Aarti Drugs; Operations Permitted After EDC Levy
Aarti Drugs Limited has successfully secured a revocation order from the Gujarat Pollution Control Board (GPCB), allowing the company to resume operations at its Sayakha plant. The resolution follows an earlier closure direction issued by the GPCB after certain non-compliances were noted during an inspection.The company had initially received a Closure Directions letter from the GPCB under Section 33A of the Water (Prevention and Control of Pollution) Act, 1974. This directive mandated the temporary closure of Amines manufacturing operations at the plant located in Saykha Industrial Estate, Dist. Bharuch, Gujarat, effective 15 days from the date of the letter's issuance.
Following this direction, Aarti Drugs submitted an application to the GPCB seeking the revocation of the closure order. The GPCB subsequently accepted the company’s application and issued a formal revocation order, permitting the continuation of operations.
Alongside granting the operational permit, the GPCB imposed an interim Environmental Damage Compensation (EDC). This compensation was levied under the "Polluter Pays" Principle, in accordance with the Central Pollution Control Board's (CPCB) Environment Compensation regime/guidelines as an interim measure. The amount set for the EDC was Rs 10,20,000/-.
The non-compliance issues were identified during an inspection conducted by the GPCB on June 20, 2026, concerning conditions of the Water Act and Consolidated Consents and Authorization (CCA).
Key details regarding the closure direction and its resolution are summarized below:
| Particular | Detail |
|---|---|
| Authority | Gujarat Pollution Control Board (GPCB) |
| Nature of Original Action | Closure Directions under Section 33A of the Water (Prevention and Control of Pollution) Act, 1974. |
| Date of Directive Receipt | July 31, 2026 |
| Violation Details | Non-compliances regarding Water Act and CCA conditions observed during a June 20, 2026 inspection. |
| Resolution Action by GPCB | Revocation Order issued following the company's application. |
| Financial Implication (EDC) | Rs 10,20,000/- levied as interim Environmental Damage Compensation. |
Aarti Drugs Limited confirmed that it has deposited the full amount of the interim EDC, amounting to Rs 10,20,000/-, with the GPCB. The company stated that there is no impact on its financial or operational activities.
AARTIDRUGS Stock Price Movement
On Friday, shares of Aarti Drugs Limited rallied, climbing 2.47% to close at ₹422.75 after a strong session. The stock traded volumes totaled 187,361 shares during the trading day.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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