Nestlé India Limited has secured a decisive legal victory in a prolonged income tax dispute, with the Supreme Court of India dismissing appeals filed by the Income Tax authority regarding general licensing fees spanning over a decade. The company announced this development through a regulatory filing dated January 21, 2025, providing closure to litigation involving substantial financial implications.

Supreme Court Ruling Details

The Supreme Court's order dated January 13, 2025, which was received by the company on January 21, 2025, dismissed the Income Tax authority's appeals as withdrawn. This ruling represents the culmination of a multi-tiered legal battle that had previously seen favorable outcomes for Nestlé India at lower court levels.

Background of the Litigation

The dispute centered on the Income Tax authority's disallowance of general licensing fees paid by Nestlé India during the specified financial years. Tax authorities had issued various orders contending that the payments made during these periods were excessive and unreasonable, leading to disallowances that formed the basis of the contested assessments.

The company had consistently challenged these orders through the appropriate legal channels, maintaining its position regarding the legitimacy and reasonableness of the licensing fee payments. The matter progressed through multiple levels of the judicial system before reaching its final resolution.

Legal Journey Through Courts

The litigation followed a structured path through India's judicial hierarchy:

• Initial Stage: Income Tax authority issued disallowance orders
• Company Response: Nestlé India filed appeals against the orders
• High Court Level: Delhi High Court decided in favor of the company
• Supreme Court Appeal: Income Tax authority challenged the High Court decision
• Final Resolution: Supreme Court dismissed the authority's appeals

Regulatory Compliance and Disclosure

Nestlé India's announcement was made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, specifically addressing updates on material litigation. The company referenced its previous disclosure dated August 14, 2023, and subsequent quarterly filings that had kept stakeholders informed about the ongoing litigation status.

The disclosure follows the prescribed format for material litigation updates, ensuring transparency regarding developments that could impact the company's financial position. This regulatory filing demonstrates the company's commitment to maintaining proper corporate governance standards and keeping investors informed about significant legal developments.

Financial and Strategic Implications

With the Supreme Court's dismissal of the Income Tax authority's appeals, Nestlé India has successfully defended its position on general licensing fee payments totaling ₹101.21 crores across the disputed financial years. This resolution eliminates a significant contingent liability and provides certainty regarding the company's tax obligations for the periods in question.

The favorable outcome reinforces the company's tax compliance practices and validates its approach to licensing fee arrangements during the contested years. This legal victory concludes a lengthy dispute that had persisted through multiple levels of India's judicial system, providing definitive closure on the matter.

Nestlé India Limited has announced a key leadership change with the nomination of Mr. Edouard Mac Nab as Executive Director – Finance & Control and Chief Financial Officer, effective March 1, 2026. The appointment is subject to regulatory approvals and will see Mac Nab succeed Ms. Svetlana Boldina in this critical role.

Leadership Transition Details

The company informed stock exchanges that Mac Nab's nomination follows their earlier communication dated December 10, 2025. The proposal will be presented to the Audit Committee and Board of Directors at their upcoming meetings, after receiving a recommendation from the Nomination and Remuneration Committee.

Executive Profile and Experience

Mr. Edouard Mac Nab, aged 54, currently serves as Head of Finance & Control at Nestlé Canada, where he has played a pivotal role in restoring profitability and transforming the Finance organization to accelerate the digital agenda. His extensive international experience spans over 25 years across multiple regions including Asia, North America, Latin America, and Europe.

Educational Background and Career Highlights

Mac Nab holds a Bachelor's degree in Business Administration with a major in Finance/Accounting and a degree in Law. He is recognized as a change agent with a proven track record in several key areas:

• Business turnarounds
• Strategic planning
• Sustainability initiatives
• Digital transformation

Nestlé Group Experience

Within the Nestlé organization, Mac Nab joined Nestlé France as Chief Financial Officer in February 2022 before transitioning to his current role at Nestlé Canada in September 2024. His tenure has been marked by significant contributions to organizational transformation and financial performance improvement.

Previous Professional Experience

Before joining the Nestlé group, Mac Nab held senior finance leadership positions at several multinational corporations, demonstrating his versatility across different industries and markets:

• Reckitt
• Mead Johnson Nutrition
• Bristol-Myers Squibb

Regulatory Compliance

The announcement was made in compliance with Regulation 30 and Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. The company has informed both BSE Limited and National Stock Exchange of India Limited about this key managerial personnel change, ensuring full transparency with stakeholders and regulatory authorities.