Suzlon Energy Limited has disclosed to stock exchanges that it faces a significant customs penalty of Rs 9.60 crores imposed by the Principal Commissioner of Customs, Chennai. The penalty was levied on Suzlon Global Services Limited, which has since merged with Suzlon Energy Limited, for alleged violations related to customs duty payments.

Penalty Details and Authority Action

The customs authority has imposed a substantial financial penalty on the renewable energy company. The order was received by the company on February 19th, 2026, with the penalty amount specified as Rs 9,60,45,306.

Nature of Alleged Violation

The penalty stems from alleged short payment of customs duty under the Integrated Goods and Services Tax (IGST) head. The customs department has determined that there was a shortfall in the duty payments made by the company's subsidiary, leading to this enforcement action.

Company's Response and Next Steps

Suzlon Energy Limited has indicated that it will challenge the customs order through the appropriate legal channels. The company stated in its regulatory filing that it "shall prefer an appeal against the order with the appropriate authorities in due course of time."

Financial Impact Assessment

The company has disclosed that the financial impact of this penalty is contingent upon the outcome of the planned appeal process. According to the regulatory filing, the cumulative penalty of Rs 9,60,45,306 may become payable subject to the results of the appeal proceedings.

This disclosure was made under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with investors and the public regarding material developments affecting the company.

Suzlon Energy Limited has received significant relief from tax authorities regarding a penalty that was imposed for FY 2016-17. The company announced that the Deputy Commissioner of Income Tax, Ahmedabad, has dropped a penalty of Rs.1.02 crore in full as part of fresh proceedings.

Background of the Penalty

The penalty was originally levied on the company in relation to disallowance on account of late payment of employees' contribution to provident fund and ESI during FY 2016-17. Suzlon Energy had previously informed the stock exchanges about this penalty through a letter dated 4th January 2025.

Current Development

The tax authorities have now dropped the aforesaid penalty in full as part of the fresh proceedings. This development provides complete relief to the company from the financial burden that was imposed earlier.

Regulatory Compliance

Suzlon Energy has informed both the National Stock Exchange of India Limited and BSE Limited about this development in compliance with the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The communication was signed by Company Secretary Geetanjali S. Vaidya on 17th February 2026.

Impact on Company

The dropping of this penalty removes a financial liability from the company's books and provides relief from the regulatory burden that was imposed for the FY 2016-17 period. This development is particularly significant as it resolves a matter that had been pending since the original penalty was imposed.