Vedant Fashions paid a ₹50,000 compounding fee to the Legal Metrology Department of the Government of NCT of Delhi on September 16, 2026. The payment resolved an allegation of non-declaration of product size on a Sherwani label.

The company received the initial notice from the Assistant Controller of Legal Metrology on June 8, 2026. The authority cited a violation of Rule 18(1) of the Legal Metrology Packaged Commodities Rules 2011 during an inspection at one of the retailer’s outlets.

Regulatory Compliance Details

Vedant Fashions submitted a request for compounding on September 2, 2026. The authority issued the order on September 8, 2026, mandating the fee via Demand Draft. The company complied by submitting the draft on September 15, 2026.

The company disclosed that the financial impact is limited to the compounding fee. No other operational or financial consequences were reported. The disclosure was made pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations 2015.

Vedant Fashions has notified shareholders regarding the deduction of tax at source on its proposed final dividend of ₹7.75 per equity share for FY26. The Board recommended the payout in its meeting on May 8, 2026, subject to approval at the Annual General Meeting scheduled for September 28, 2026.

Dividend Payout Details

The company will pay the dividend to shareholders based on beneficial ownership details furnished by depositories or the Register of Members as at the close of business on Monday, September 21, 2026. This date serves as the record date for determining eligibility. Payment is proposed for Tuesday, September 29, 2026, or later.

Tax Deduction at Source

Under the Income-tax Act, 2025, dividends are taxable in the hands of shareholders for Tax Year 2026-27. Vedant Fashions will deduct tax at applicable rates unless shareholders submit valid exemption documents. The standard TDS rate for resident individuals with a valid PAN is 10%. However, no TDS will be deducted if the total dividend paid to a resident individual during the tax year does not exceed ₹10,000.

Shareholders without a PAN or with an inoperative PAN (due to non-linking with Aadhaar) will face a higher TDS rate of 20%. To avail lower or nil tax rates, eligible residents must submit Form 121 by September 22, 2026. Non-resident shareholders may claim benefits under Double Taxation Avoidance Agreements by submitting a Tax Residency Certificate and Form 41.

Submission Guidelines

All required documents must be uploaded to the Registrar and Transfer Agent portal or emailed before 7:00 pm on Tuesday, September 22, 2026. Shareholders holding physical shares are also reminded to update their KYC details, including bank account information and specimen signatures, to facilitate electronic dividend payments.