Kothari Fermentation & Biochem Ltd has been served a penalty notice of ₹52,17,724 by Paschimanchal Vidyut Vitran Nigam Limited (PVVNL) regarding alleged delays in the renewal and submission of bank guarantees for an additional security deposit. The company disputes the penalty, arguing that the delay was caused by the electricity distributor's failure to convey the required guarantee amount and approve the change of the guarantee-issuing bank in a timely manner. Consequently, Kothari Fermentation is preparing a suitable representation and exploring legal remedies to contest the notice.

The communication, dated June 29, 2026, was issued by the Executive Engineer of the Electricity Distribution Division at PVVNL, Sikandrabad, District Bulandshahr, Uttar Pradesh. The company received the notice on July 07, 2026. The penalty arises from allegations that the company failed to renew or submit bank guarantees towards the additional security deposit within the stipulated timeframe.

Company Response and Dispute

Kothari Fermentation maintains that the requisite bank guarantees have already been renewed and submitted, asserting full compliance with the underlying requirements. The company contends that the alleged penalty is a consequence of procedural lapses on the part of the electricity distribution company, specifically delays in communicating the necessary financial details and approving bank changes.

As a result, the company is actively pursuing an appeal and considering further legal action to overturn the penalty. The management has stated that the operations and other activities of the company remain unaffected by this development.

Financial Impact

The potential financial impact of the dispute is currently limited to the penalty amount of ₹52,17,724. However, the actual liability will depend on the outcome of the company's representation, appeal, and any subsequent legal proceedings. The disclosure was made to BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Gannet BioChem has entered a development partnership with Serina Therapeutics to support the SER-252 program, an investigational therapy for advanced Parkinson's disease. The agreement combines Serina Therapeutics' proprietary POZ Platform technology with Gannet BioChem's expertise in process development, scale-up, and manufacturing support for complex therapeutic programs. This collaboration aims to advance SER-252 through clinical development following its recent clearance of an Investigational New Drug (IND) application by the U.S. Food and Drug Administration (FDA).

Nicholas Shackley, Chief Executive Officer of Gannet BioChem, stated that the partnership will contribute technical expertise to support the program through critical stages of growth. Steve Ledger, Chief Executive Officer of Serina Therapeutics, highlighted that Gannet BioChem's track record in complex polymer-based therapeutics complements their efforts to unlock the potential of their POZ Platform in neurology.

Key Partnership Details

The collaboration focuses on the development of SER-252, which targets advanced Parkinson's disease. The program has achieved a significant milestone with FDA IND clearance, allowing it to proceed into clinical trials.

Strategic Implications

This partnership expands Gannet BioChem's portfolio of development programs supporting biopharmaceutical companies from early-stage development through commercialization. The announcement follows Gannet BioChem's participation at the 2026 BIO International Convention, where the company engaged with industry partners to discuss emerging technologies and collaboration opportunities.

Gannet BioChem is a specialty contract development and manufacturing organization (CDMO) focused on activated polymers, including polyethylene glycol (PEG) reagents. Serina Therapeutics is a clinical-stage biotechnology company developing drug product candidates for neurological diseases using its POZ Platform technology.