Dhampur Sugar Mills has received a penalty of ₹1,00,000 from the Excise Commissioner, Uttar Pradesh, Prayagraj, for alleged non-compliance with specific excise regulations. The order, passed under Section 74 of the United Provinces Excise Act, 1910, cites violations of the Uttar Pradesh Excise (Distillery Establishment and Operation) Rules, 2018, and license conditions. The company received the communication on July 2, 2026.

The penalty arises from allegations that certain Liquor, ENA, and Tetra Packs (Country Liquor) were stored at locations other than those prescribed under the applicable excise regulations and license conditions. The order specifically targets the company's adherence to storage protocols mandated by the U.P. Excise Department.

Financial and Operational Impact

The company disclosed that the financial impact of this order is restricted to the penalty amount of ₹1,00,000. Management confirmed that the order does not have any material impact on the operations or other activities of the entity. Manufacturing operations continue to proceed in the normal course of business.

Details of the Regulatory Order

The disclosure was submitted to the exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Dhampur Sugar Mills Limited has confirmed the utilisation of proceeds from its Commercial Papers issued during the quarter ended June 30, 2026. The company's Chief Financial Officer, Susheel Kumar Mehrotra, certified that the funds were used for the purposes originally disclosed and that all listing conditions were adhered to in accordance with SEBI regulations.

This certification follows the company's earlier issuance of Commercial Papers amounting to ₹100 crore to Kotak Mahindra Bank. The debt instruments, which carry a coupon rate of 7.15%, were allotted on June 30, 2026, to meet short-term funding requirements. The issuance reflects the company's strategy to leverage its strong credit profile for efficient capital raising.

The Commercial Papers have a tenure of 30 days and are set to mature on July 30, 2026. The issue value stands at ₹99,41,58,000, with a redemption value of ₹100,00,00,000. The instruments have been rated IND A1+, indicating a high degree of safety regarding timely payment of principal and interest.

The details of the issuance and the subsequent utilisation certificate were submitted to the National Stock Exchange of India and BSE Limited. The company confirmed that these Commercial Papers will remain unlisted. The filings were signed off by Aparna Goel, Company Secretary, and Susheel Kumar Mehrotra, Chief Financial Officer.