Highlights
- The District Consumer Dispute Redressal Commission in Delhi has imposed a punitive damage of ₹ 15 lakhs on Emami Limited for unfair trade practices related to packaging and advertisement.
- Emami Limited delayed disclosing the exchange filing regarding the damages awarded, initially believing it did not constitute a fine or penalty and is currently contesting the order.
- The company has decided to disclose the details of the consumer court’s order under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, prioritizing transparency and good governance.
A District Consumer Dispute Redressal Commission in Delhi has ordered punitive damage of ₹ 15 lacs on Emami Limited because of unfair trade practices on packaging and advertisement.
The allegations were related to a product manufactured by the Company.
The company received the order on December 10, 2024. However, there was a delay in the disclosure of the exchange filing. “The delay in disclosure was primarily due to the company’s initial assessment that the damages awarded in the consumer complaint matter did not constitute a fine or penalty and the company is contesting and filing an appeal against the same,” Emami said in an exchange filing.
Further stating that “As such, initially the company did not believe that disclosure was required under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.”
The company decided to disclose the relevant details of the consumer court’s order “in the interest of good governance.”
“The disclosure was made promptly once the company concluded that transparency and governance principles outweighed the initial assessment,” Emami said.
The Company is likely to file an appeal aginst the commission’s order.
The disclosure to the exchange was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
