Mawana Sugars Limited , a prominent sugar manufacturer, has received a significant tax demand notice from the Nagar Palika Parishad of Mawana, Uttar Pradesh. The notice pertains to differential payments for house tax and water tax, covering a span of seven financial years from 2018-19 to 2024-25.

Key Details of the Tax Demand

Background and Implications

The company disclosed that for the assessment year 2025-26, it had already paid ₹25,89,392 towards house tax and water tax on a self-assessment basis. Prior to this, Mawana Sugars had been making tax payments as per the directions of the Allahabad High Court since 2018-19, pending the completion of assessments by the Nagar Palika Parishad.

The current demand of ₹1,56,57,180 represents the balance amount after adjusting the payments made under the High Court's directions for the specified period.

Company's Response

Mawana Sugars Limited has indicated that it is seeking applicable rebates for timely payment. The company faces a critical deadline, as it must settle the balance amount by March 2026 to avoid incurring a substantial 20% surcharge.

Regulatory Compliance

This disclosure aligns with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has duly informed the stock exchanges about this material development, demonstrating its commitment to transparent communication with stakeholders.

The situation underscores the importance of proper tax planning and the potential financial implications of delayed assessments by local authorities. It also highlights the need for companies to maintain open channels of communication with regulatory bodies to address such issues promptly.

Mawana Sugars Limited (MSL) has informed stock exchanges about a significant development in its proposed amalgamation with its subsidiary, Mawana Foods Private Limited. The company announced that the National Company Law Tribunal (NCLT) Delhi has reserved its order regarding the first motion application for the scheme of amalgamation.

Key Details of the Announcement

Implications and Next Steps

The reservation of the order by the NCLT marks a crucial stage in the amalgamation process. This step indicates that the tribunal has completed its hearing and is now deliberating on the merits of the application before pronouncing its decision.

Mawana Sugars has committed to informing the stock exchanges once the order is pronounced and uploaded on the NCLT website. This transparency ensures that all stakeholders, including shareholders and potential investors, are kept informed about the progress of this significant corporate action.

About the Amalgamation

The proposed amalgamation between Mawana Sugars Limited and its subsidiary, Mawana Foods Private Limited, is a strategic move that could have implications for the company's structure and operations. Amalgamations are often undertaken to streamline operations, reduce costs, or consolidate market position.

Investors and market watchers will be keenly awaiting the NCLT's decision, as it will determine the next steps in this corporate restructuring process. The outcome could potentially impact the company's future business strategy and financial performance.

Stakeholders are advised to stay tuned for further updates from the company regarding the NCLT's decision and its implications for the proposed amalgamation.