Market Committee Patiala Issues Demand Notice to United Breweries Ltd for Barley Transactions
United Breweries Ltd has received a demand notice from the Assessing Authority-cum-Secretary of the Market Committee, Patiala regarding alleged non-deposit of applicable fees and funds related to barley transactions.The action stems from an Assessment Order along with the demand notice under FORM P, which was received by the company on July 01, 2026. The assessment covers the period from April 01, 2020, to March 31, 2026.
According to the Authority, United Breweries Limited purchased, stored, and processed barley within the notified area of the Market Committee, Patiala. The notice alleges that the company failed to deposit the requisite Market Fee and Rural Development Fund (RDF) for these transactions. Furthermore, the Order noted that barley brought into Punjab from outside the state is deemed liable to be taxed as if it were purchased or sold within the notified market area.
The demand notice details include various financial levies amounting to a total of 116,25,28,199 Rs. These charges are itemized as follows:
| Levy Type | Amount in Rupees (Rs.) |
|---|---|
| Penalty | 93,46,38,510 |
| Rural Development Fund (RDF) | 9,34,63,851 |
| Market Fee | 9,34,63,851 |
| Interest on RDF (up to June 30, 2026) | 4,09,61,987 |
| Total Demand | 116,25,28,199 |
In response to the assessment, United Breweries Ltd stated that it is currently challenging the assessment order and the demand notice before the appropriate forum. The company views the assessment as arbitrary, factually and legally incorrect.
The company assessed that the financial impact of this matter would be limited to the amount demanded under the Demand Notice, confirming that all charges pertain to its activities involving the purchase, storage, and processing of barley within the notified area.
UBL Stock Price Movement
United Breweries Limited shares slipped by 0.17% to settle at ₹1357.2 today, closing the post-market session slightly down. The stock saw significant intraday movement, trading between a low of ₹1347.6 and a high of ₹1381.8 during the 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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