Zuari Agro Chemicals Limited Receives Interim Orders Related to Compounding Applications
Zuari Agro Chemicals Limited has received two Interim Orders dated July 29, 2026, from the Office of the Regional Director, Western Region-I, Ministry of Corporate Affairs. These orders are in relation to compounding applications filed regarding alleged non-compliances under Sections 166 and 178 of the Companies Act, 2013.The Interim Orders relate to submissions made by the Company along with Executive Director, Promoter Directors, Director, and former Director/KMPs concerning the alleged violations.
Details concerning the allegations, payment of fines, and financial impact are as follows:
| Aspect | Detail |
|---|---|
| Authority Issuing Order | Regional Director, Western Region-I, Ministry of Corporate Affairs, Mumbai |
| Date of Order Receipt | July 29, 2026 |
| Alleged Violation (Section 166) | Breach of duties by the directors during Financial Year 2020-21. |
| Alleged Violation (Section 178) | Payment of excess managerial remuneration to Mr. Sunil Sethy, erstwhile Managing Director, during FY 2019-20. |
The Interim Orders have no material impact on the overall financials or operations of Zuari Agro Chemicals Limited. However, compounding fees have been levied under both orders.
For the alleged violation relating to Section 166, no compounding fee was levied on the Company. A total compounding fee amounting to Rs. 6.50 lakhs has been levied on the Executive Director, Promoter Directors, Director(s), and KMP(s) as specified in the Interim Order.
Regarding the violation under Section 178, a total of Rs. 13.00 lakhs in compounding fees has been levied on the applicants, which includes Promoter Directors and former Director/KMPs. Of this amount, Rs. 5.00 lakhs was levied on the Company, according to the Interim Order.
ZUARI Stock Price Movement
Shares of Zuari Agro Chemicals Limited are edging higher to ₹237.5 as of 11:54 AM today, climbing by 0.85%. The stock trades briskly in live markets, with a total traded volume accounting for 128,739 shares.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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