Vishal Mega Mart Limited has disclosed, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that its subsidiary Airplaza Retail Holdings Private Limited has received a penalty order from the Court of Additional District Magistrate, Rampur. The order, received on May 05, 2026, pertains to a food safety inspection carried out at the subsidiary's Rampur store and imposes a total penalty of Rs. 2,00,000 (Rupees Two Lakh Only).

Background of the Violation

The matter originated on April 03, 2025, when a Food Safety Officer conducted an inspection at the Rampur store operated by Airplaza Retail Holdings Private Limited. During the inspection, a sample of 'Turmeric Powder' was collected for analysis. Upon testing, the sample was found to be not in conformity with the relevant provisions of applicable laws. Following the findings, the Food Safety Officer filed a complaint before the Court of Additional District Magistrate, Rampur, alleging violations of the provisions of the Food Safety and Standards Act, 2006.

Penalty Details

The court subsequently imposed penalties on both the Store Manager and the subsidiary. The following table summarises the penalty breakdown as disclosed by the company:

Impact on Operations and Financial Position

Vishal Mega Mart stated that the financial impact of the order is limited to the extent of the penalty imposed. The company clarified that there is no material impact on the operations or other activities of the company due to the said order. Since the product involved is a third-party manufactured item, the company has indicated that the penalty amount will be recovered from the concerned manufacturer. Airplaza Retail Holdings Private Limited is reviewing the order and evaluating its next steps.

The disclosure was made by Rahul Luthra, Company Secretary and Compliance Officer of Vishal Mega Mart Limited, on May 06, 2026, pursuant to Regulation 30 read with Sub-para 20 of Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

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.