As per the company, there is no impact as the product packaging and advertisement is not in use now
Citing unfair trade practices on packaging and advertisement, a district consumer disputes redressal commission in Delhi has ordered punitive damage of Rs 15 lakh on Emami. The allegations were regarding a product manufactured by the company.
The company received the direction or order on 10 December 2024 but there was a delay in the discourse of the exchange filing. The company clarified that it was doing an initial assessment.
“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,” the company stated in an exchange filing.
It added, “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. However, in the interest of good governance and after further evaluation, the company decided to disclose the relevant details of the consumer court’s order.”
As per the company, there is no impact as the product packaging and advertisement is not in use now. It stated that the disclosure was made promptly once the company concluded that transparency and governance principles outweighed the initial assessment.
“The damages, although not material, were disclosed to ensure full compliance with the spirit of the regulations. We assure that the company remains committed to maintaining transparency in all matters concerning material developments,” the statement read.
Giving the details of the violation or contravention committed or alleged to be committed, Emami stated that it would be seeking the option of filing an appeal against the order.
