United Breweries Limited received a demand notice on July 1, 2026 from the Assessing Authority-cum-Secretary, Market Committee, Patiala. The notice relates to alleged non-payment of Market Fee and Rural Development Fund on barley transactions occurring within Patiala's notified market area.
The total demand amounts to Rs 116.25 crore. This includes Market Fee of Rs 9.35 crore, a Penalty of Rs 93.46 crore, RDF of Rs 9.35 crore, and interest on RDF calculated up to June 30, 2026 of Rs 4.10 crore.
The assessment order covers barley purchases, storage, and processing from April 1, 2020 to March 31, 2026. The authority alleges that barley brought into Punjab from outside the state is deemed to have been purchased or sold within the notified market area, making those transactions liable for Market Fee and RDF.
UBL disclosed the receipt of the demand notice to BSE and NSE on July 2, 2026 under Regulation 30 of the SEBI Listing Regulations. UBL plans to challenge the assessment order before the appropriate forum. UBL stated the demand notice is arbitrary, factually incorrect, and legally invalid.
UBL expects the financial impact to be limited to the amount demanded. The assessment order was issued under Form P by the Market Committee, Patiala. The demand notice was signed by the Assessing Authority-cum-Secretary of the Market Committee.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.