United Breweries received a demand notice of ₹116.25 Cr from the Assessing Authority-cum-Secretary, Market Committee, Patiala on July 01, 2026, alleging non-payment of market fees and Rural Development Fund (RDF) on barley transactions. The demand, which includes a substantial penalty component, poses a potential financial liability for the company, though it has indicated its intent to contest the order. The assessment covers transactions involving the purchase, storage, and processing of barley within the notified area of the Market Committee, Patiala, between April 01, 2020 and March 31, 2026.

Breakdown of the Demand

The demand notice comprises four main components, with the penalty constituting the largest share. The authority has levied charges based on the premise that barley brought into Punjab from outside the state is deemed to have been purchased or sold within the notified market area, attracting applicable fees.

Company's Response and Impact

United Breweries has disputed the assessment, characterizing the demand notice as arbitrary, factually, and legally incorrect. The company disclosed that it is in the process of challenging the order before the appropriate forum. Regarding the financial implications, the company stated that based on its assessment, the impact, if any, would be limited to the amount demanded under the notice. It affirmed its commitment to maintaining high standards of compliance and governance while pursuing legal recourse against the demand.

United Breweries Limited has confirmed that it did not create any new encumbrances directly or indirectly during the financial year ended March 31, 2026, apart from those already disclosed. The declaration was submitted to the stock exchanges in compliance with Regulation 31(4) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This disclosure ensures transparency regarding the company's financial leverage and asset obligations during the specified period.

The filing was made by Heineken UK Limited on behalf of United Breweries Limited. The submission addressed the compliance requirements to both BSE Limited and the National Stock Exchange of India Limited, as well as the members of the company's Audit Committee. The declaration explicitly states that the company, along with persons acting in concert, has not undertaken any new encumbrance activities beyond the scope of prior disclosures.

Regulatory Compliance

The declaration serves as a formal compliance notice under Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This regulation mandates that acquirers and persons acting in concert disclose any encumbrances on the shares of the target company. The confirmation of no additional encumbrances provides clarity to shareholders and regulatory bodies regarding the financial standing of the entity.

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