Garware marine industries Limited has disclosed receiving a notice from the Economic Offences Wing regarding an alleged equipment lease rental dispute, as the company navigates ongoing litigation in the matter. The marine equipment manufacturer informed stock exchanges about the development under regulatory disclosure requirements.

EOW Notice Details

The company received a notice from the Deputy Superintendent of Police, Economic Offences Wing-II, Chennai, addressed to the company, some existing and former directors, and the Chief Financial Officer. The notice alleges that the company failed to repay equipment lease rentals under an Equipment Lease Agreement.

Ongoing Legal Proceedings

The dispute involves ongoing litigation between Garware Marine Industries and Integrated Finance Company Limited (IFCL) concerning recovery of machinery lease rent. The company has taken several legal measures to address the matter through proper judicial channels.

The company has placed a deposit of ₹30 lakhs in the Madras High Court as part of the ongoing litigation involving IFCL for recovery of machinery lease rent hired under the lease contract. Additionally, Garware Marine had filed a counter-suit against Integrated Finance Company Limited seeking recovery of ₹1.93 crores together with interest at 18% per annum, originally filed in the Bombay High Court.

Current Legal Status

Both suits have been transferred to the Madras High Court and subsequently clubbed together. The matters are currently pending before the court and awaiting listing for further hearing.

Management Response

The company's management is currently evaluating the matter and seeking appropriate legal advice to respond to the EOW notice. The management emphasized that the matter is sub judice before the Madras High Court and represents a civil dispute rather than a criminal matter.

Garware Marine Industries has committed to keeping stakeholders informed of any material developments in this matter as the legal proceedings continue. The company filed this disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with investors and regulatory authorities.

Garware Marine Industries Limited has responded to BSE's surveillance query regarding recent fluctuations in its stock price, clarifying that no company-specific factors are driving the movement. The marine equipment manufacturer issued the clarification on March 16, 2026, addressing concerns about unusual trading activity.

Company's Official Response

In its communication to BSE's Surveillance Department, the company stated it is not aware of any specific reason for the recent share price movement. The management attributed the fluctuation to purely market-driven forces, emphasizing that no internal information, events, or developments have contributed to the price volatility.

Business Operations and Compliance

Garware Marine Industries confirmed that it continues to operate in the normal course of business without any disruptions. The company reaffirmed its commitment to maintaining transparency and adhering to all applicable regulatory requirements under SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

The clarification was signed by Pallavi P. Shedge, Company Secretary & Compliance Officer, who assured stakeholders of the company's continued compliance with price-sensitive information disclosure norms. The company remains available for any further clarifications regarding the matter.

Market Context

Such clarifications are typically sought by stock exchanges when they observe unusual price movements or trading volumes that deviate from normal patterns. The company's prompt response demonstrates its commitment to regulatory compliance and investor transparency, even when no specific corporate developments are driving market activity.