Nestle India receives ₹1.36 crore customs penalty order
- Nestle India received a customs adjudication order on August 25, 2026
- Authority demands ₹11.1 crore in duty, ₹25 lakh fine, and ₹50 lakh penalty
- Total potential outflow from this order is approximately ₹1.36 crore
- Company states no material impact on financials or operations
- Nestle plans to challenge the order passed under Customs Act 1962
*this image is generated using AI for illustrative purposes only.
Nestle India received an adjudication order from the Principal Commissioner of Customs on August 25, 2026. The Mundra Port authority demanded ₹11.1 crore in customs duty along with interest, a redemption fine of ₹25 lakh, and a penalty of ₹50 lakh.
The order was passed under Section 28(8) of the Customs Act, 1962. The company disclosed the receipt of the order pursuant to Regulation 30 and Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Order Details
The breakdown of the amounts demanded by the customs authority is as follows:
| Component | Amount |
|---|---|
| Customs duty + interest | ₹11,10,59,061 |
| Redemption fine | ₹25,00,000 |
| Penalty | ₹50,00,000 |
The total liability arising from this specific order stands at approximately ₹1.36 crore when combining the duty, fine, and penalty components.
Company Response
Nestle India stated that the order has no material impact on its financials, operations, or other activities. The company indicated it will explore various options to challenge the adjudication order.
Pramod Kumar Rai, Company Secretary and Compliance Officer, signed the disclosure filed with the stock exchanges.
Historical Stock Returns for Nestle
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.32% | -0.23% | +0.59% | +12.61% | +25.16% | +45.77% |
What specific legal avenues or precedents is Nestle India likely to leverage when challenging the customs adjudication order?
Could this ruling trigger a broader review of import documentation practices for other FMCG companies operating through Mundra Port?
How might prolonged litigation over this case affect Nestle India's cash flow management and working capital requirements in the short term?
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