Natural Capsules Limited has received relief from the Madras High Court, which has suspended the Drug Controller's order for temporary closure of the company's manufacturing plant in Pondicherry. The pharmaceutical company announced the resumption of operations following the court's intervention in the regulatory matter.

Court Order Details

The Madras High Court issued an order suspending the suspension directive previously passed by the Department of Drug Controller. Natural Capsules Limited received the court order on January 29, 2026, enabling immediate resumption of manufacturing activities at its Pondicherry facility.

Regulatory Violation Background

The temporary closure was initiated due to a regulatory compliance issue involving material supply to a customer whose drug license had expired. This violation led to the Drug Controller's Department taking action against the company's manufacturing operations.

Financial Impact Assessment

The temporary closure of the Pondicherry manufacturing plant had measurable financial consequences for Natural Capsules Limited. The company quantified the operational disruption's impact on its business performance.

Compliance and Disclosure

Natural Capsules Limited has fulfilled its regulatory disclosure obligations under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company previously informed exchanges about the initial closure on December 26, 2025, and has now updated stakeholders regarding the court's favorable decision.

The resumption of operations at the Pondicherry facility allows Natural Capsules Limited to restore its full manufacturing capacity and work toward recovering the sales impact experienced during the temporary shutdown period.

Natural Capsules Limited has received a temporary closure order from the Department of Drug Controller for its Pondicherry manufacturing plant on December 26, 2025. The pharmaceutical company disclosed this regulatory action to stock exchanges under SEBI listing regulations.

Regulatory Action Details

The Department of Drug Controller issued the temporary closure direction following an alleged violation by the company. According to the disclosure, Natural Capsules Limited supplied materials to a customer whose drug license had expired, constituting a regulatory contravention.

Company Response and Next Steps

The company has acknowledged the regulatory order and is taking immediate corrective measures. Natural Capsules Limited stated it will submit all relevant documents to the Department of Drug Controller for revocation of the closure direction at the earliest possible time.

The management has committed to keeping stock exchanges informed of any material developments relating to this matter as they occur.

Financial and Operational Impact

The temporary closure affects the operations of the Pondicherry manufacturing plant. However, the company has indicated that the financial impact of this closure is yet to be ascertained. The duration of the temporary closure will depend on the regulatory review process and the company's compliance with corrective measures.

Regulatory Compliance

This disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company provided detailed information as required under the regulatory framework, ensuring transparency with stakeholders regarding this material development.