AWL Agri Business Limited has received multiple penalty orders from tax authorities across different states, with the latest being a ₹35.02 lakh penalty from Uttar Pradesh authorities. The company disclosed the most recent penalty order to stock exchanges on December 24, 2025, following an earlier penalty of ₹94.11 lakh from Odisha tax authorities disclosed on December 12, 2025.

Latest Penalty from Uttar Pradesh

The company received a penalty order of ₹35.02 lakh from the Office of the Joint Commissioner, Corporate Circle, Lucknow, Uttar Pradesh. The penalty was imposed under Section 73 of the Uttar Pradesh Goods & Service Tax Act, 2017, with the order dated December 23, 2025, and received by the company on the same day.

Nature of Violations

The latest penalty from Uttar Pradesh authorities relates to a demand order disallowing Input Tax Credit (ITC) on account of reconciliation differences with GSTR 2A and matters concerning eligibility under Section 17(5) of the CGST Act. This differs from the earlier Odisha penalty, which was issued for alleged excess refund under Section 54 of the CGST Act.

Company's Response Strategy

AWL Agri Business has indicated it plans to challenge both penalty orders through appropriate legal channels. The company stated it is taking appropriate steps to appeal against the penalty orders before the appropriate authorities, demonstrating a consistent approach to contesting these regulatory actions.

Financial Impact Assessment

Regarding the cumulative financial impact of ₹1.29 crore in penalties, the company has assessed that it does not foresee any material impact on its financial, operational, or other activities. This assessment suggests the company's confidence that these penalties, while significant in absolute terms, will not substantially affect its overall business operations or financial performance.

Regulatory Compliance and Disclosure

Both disclosures were made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Circular No. SEBI/HO/CFO/CFD-PoD1/P/CIR/2023/123 dated July 13, 2023. Company Secretary Darshil Lakhia signed both disclosure documents, ensuring proper corporate governance protocols were followed in communicating these developments to stakeholders and the investing public.

AWL Agri Business Limited, formerly known as Adani Wilmar Limited, has applied to the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for the reclassification of numerous Adani group entities. This application, submitted on 27 November 2025, seeks to change the status of these entities from the promoter and promoter group category to the public category.

Entities Involved

The reclassification request encompasses a wide range of Adani group companies, including:

• Adani Enterprises Limited
• Adani Commodities LLP
• Various subsidiaries across different sectors

These entities span multiple industries, including aerospace, agriculture, airports, cement, mining, and aviation fuel services.

Regulatory Framework

The application for reclassification has been made under Regulation 31A of the Securities and Exchange Board of India (SEBI) Listing Regulations. This regulation provides the framework for the reclassification of promoter/promoter group entities to public shareholders.

Previous Developments

This move follows earlier actions by the Adani Group, including:

• The complete divestment of its stake in AWL Agri Business
• The sale of 90,977,502 equity shares (7.00% of total equity) by Adani Commodities LLP through a bulk deal on the stock exchange

Implications

If approved, the reclassification could have several implications:

1. Ownership Structure: It represents a significant shift in the company's ownership structure.
2. Market Perception: The move may impact how the market views AWL Agri Business, potentially affecting investor sentiment and stock performance.
3. Regulatory Compliance: The reclassification aligns with regulatory requirements, as the Adani Group entities no longer exercise control over the company's affairs, hold special rights, have board representation, or act as key managerial personnel.

Next Steps

The reclassification request will be placed before AWL Agri Business's board of directors for consideration. The outcome of this application will be closely watched by investors and market analysts, as it may influence the company's future governance structure and market positioning.