<h1>Kothari Fermentation & Biochem Faces Penalty Notice from PVVNL over Delayed Bank Guarantees</h1>
Kothari Fermentation & Biochem Ltd has received a communication and penalty notice from Paschimanchal Vidyut Vitran Nigam Limited (PVVNL) regarding the delayed renewal or submission of Bank Guarantees related to Additional Security Deposits.
The penalty notice, dated June 29, 2026, and bearing Letter No. 2127, levies a penalty of ¥52,17,724/- against the company. The notice concerns the alleged delay in renewing or submitting the required Bank Guarantees towards the Additional Security Deposit.
The company has disputed the levied penalty. It asserts that the underlying requirement was duly complied with and that the alleged penalty arose due to delays by the Electricity distribution company in conveying the necessary guarantee amount and providing approval for the change of the issuing bank. Kothari Fermentation & Biochem is currently making a suitable representation and exploring various legal remedies against the penalty.
The financial impact on operations remains non-existent, as there is no effect on the day-to-day activities of the company. However, the financial implication is limited to the amount of the penalty imposed, totaling ¥52,17,724/-, pending the outcome of the ongoing representation and appeal processes.
Key details regarding the penalty notice are summarized below:
| Particulars | Details |
|---|---|
| Issuing Authority | Executive Engineer, Electricity Distribution Division, Paschimanchal Vidyut Vitran Nigam Limited (PVVNL) |
| Nature of Action | Communication/penalty notice related to alleged delayed renewal/submission of Bank Guarantees for Additional Security Deposit. |
| Penalty Amount | ¥52,17,724/- |
| Date of Notice Receipt | July 07, 2026 |
| Company's Stance | The company disputes the penalty and is pursuing appeals and legal remedies. |
Stock Price Movement
Kothari Fermentation & Biochem Ltd. settled on Tuesday at ₹44.00, dipping 0.45% as trading concluded for the day. During the session, shares moved within an intraday range, testing a low of ₹43.20 and peaking at a high of ₹45.44.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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