Vedant Fashions Limited has resolved a regulatory compliance issue with the Legal Metrology Department by paying a compounding fee of ₹50,000.00. The company disclosed this development to stock exchanges on January 12, 2026, under Regulation 30 of the SEBI Listing Regulations.

Regulatory Notice and Violation Details

The company received initial communication from the Deputy Controller (Enforcement) Legal Metrology Department, Anantnag, Pulwama, Jammu & Kashmir through a memo dated October 10, 2025, followed by a show cause notice on November 15, 2025. The notices cited violations under Rule 9 of the Legal Metrology Packaged Commodity Rules, 2011.

Company Response and Resolution Process

Vedant Fashions took proactive steps to address the regulatory concerns. On December 9, 2025, the company submitted a formal request letter seeking compounding of the alleged offense. The Legal Metrology Department responded positively to this request.

The resolution timeline proceeded as follows:

Financial Impact and Compounding Fee

The Legal Metrology Department issued a notice on December 31, 2025, directing the company to deposit ₹50,000.00 as compounding fee. Vedant Fashions completed the payment on January 9, 2026, and formally notified the authority through a letter dated January 12, 2026.

Regulatory Compliance Disclosure

As per SEBI Listing Regulations, Vedant Fashions provided comprehensive details of the regulatory action to both NSE and BSE. The company confirmed that apart from the compounding fee amount, there is no other impact on its financial or operational activities.

The matter has been successfully resolved with the payment of the prescribed compounding fee, allowing the company to maintain its focus on regular business operations without any ongoing regulatory overhang from this specific packaging compliance issue.

GST Recovery Order Issued to Vedant Fashions

Vedant Fashions Limited , the company behind popular ethnic wear brands like Manyavar, has been served with a GST recovery order. The order, issued by the Deputy Commissioner of State Tax, Alipore Charge, Kolkata, demands a payment of ₹10.39 crore.

Details of the Order

Company's Response

Vedant Fashions has stated that they are in the process of examining the order. The company plans to take appropriate steps, which may include filing an appeal against the order.

Potential Impact

While the GST recovery order is a significant regulatory development, it's important to note that:

1. The amount, while substantial, may not severely impact the company's overall financial health, depending on its current financial position.
2. The company's decision to examine the order and potentially appeal suggests that they may contest the demand.
3. Regulatory challenges like this are not uncommon in the Indian business environment, and companies often navigate through them.

Investor Considerations

Investors and stakeholders should keep the following points in mind:

• Monitor the company's further communications regarding this matter.
• Watch for any updates on potential appeals or negotiations with tax authorities.
• Consider the potential financial impact in the context of the company's overall financial performance and position.

As always, it's advisable for investors to consult with financial advisors before making any investment decisions based on this news.