Vishal Mega Mart Limited has informed stock exchanges about a regulatory penalty imposed on its subsidiary, marking a compliance challenge for the retail chain. The company disclosed the development under SEBI regulations on April 20, 2026.

Penalty Details and Authority Action

Airplaza Retail Holdings Private Limited, a subsidiary of Vishal Mega Mart, has been penalized by food safety authorities following regulatory violations. The penalty stems from an inspection conducted at the subsidiary's store in Rayagada.

Violation and Regulatory Process

The regulatory action originated from a Food Safety Officer's inspection of the subsidiary's store in Rayagada on May 19, 2025. Following the inspection, the Food Safety Officer filed a complaint before the Adjudicating Officer, alleging violations of the Food Safety and Standards Act, 2006.

The complaint process led to the imposition of a penalty of ₹4,00,000 (Rupees Four Lakh Only) on the subsidiary. The penalty reflects the authority's assessment of the regulatory contraventions identified during the store inspection.

Financial and Operational Impact

Vishal Mega Mart has assessed the impact of the penalty on its operations and financial position. The company's disclosure provides clarity on the implications of the regulatory action.

Company Response and Compliance

The subsidiary is actively reviewing the order received from the Food Safety Authority and evaluating its next steps in response to the penalty. This indicates the company's approach to addressing the regulatory matter through appropriate legal and compliance channels.

Vishal Mega Mart has fulfilled its disclosure obligations under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders regarding the regulatory development affecting its subsidiary operations.

Vishal Mega Mart Limited has informed stock exchanges about a regulatory order received by its subsidiary company from a labour court in Uttar Pradesh. The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Court Order Details

Airplaza Retail Holdings Private Limited, a subsidiary of Vishal Mega Mart, received an order from the Assistant Labour Commissioner Court in Fatehpur, Uttar Pradesh on April 15, 2026. The order directs the recovery of ₹13,83,888 from the subsidiary company.

Nature of Violation

The order stems from a case filed by a Labour Inspector against the subsidiary under the Minimum Wages Act, 1948. The violation specifically relates to non-compliance with minimum wage requirements under Section 12 read with Rule 21 of the Act.

The Labour Inspector had initiated proceedings against Airplaza Retail Holdings Private Limited for alleged violations concerning minimum wages paid to workers. Following the legal proceedings, the Assistant Labour Commissioner Court issued the recovery order for the specified amount.

Financial and Operational Impact

The company has assessed the impact of this regulatory order on its operations and finances:

Vishal Mega Mart has clarified that the financial impact is restricted to the extent of the penalty imposed. The company emphasized that there is no material impact on its operations or other business activities due to this order.

Company Response

The subsidiary company is currently reviewing the order received from the Assistant Labour Commissioner Court. Airplaza Retail Holdings Private Limited is evaluating its next steps in response to the recovery direction, which may include legal remedies or compliance measures as deemed appropriate.

This disclosure was made by Company Secretary and Compliance Officer Rahul Luthra on April 16, 2026, ensuring compliance with stock exchange notification requirements under SEBI regulations.