Zuari Agro Chemicals Limited said it received two interim orders from the Regional Director, Western Region-I, Ministry of Corporate Affairs, Mumbai on 29 July 2026. The orders relate to compounding applications filed by the company alongside its executive director, promoter directors, director and certain former directors and key managerial personnel. The applications were filed under section 441 of the Companies Act, 2013 in connection with alleged contraventions under sections 166 and 178 of the Companies Act, 2013.

The alleged breach under section 166 concerns breach of duties by the directors during financial year 2020-21. The alleged contravention under section 178 pertains to payment of excess managerial remuneration to the erstwhile managing director during financial year 2019-20. The company said the interim orders were procedural and that no compounding fee has been levied on the company under the section 166 matter.

Under the interim order relating to section 166 a total compounding fee amounting to Rs. 6.50 lakhs has been levied on the executive director, promoter directors, director or directors and key managerial personnel including former office bearers, which converts to 0.65 million (0.65 mn). Under the interim order relating to section 178 total compounding fees of Rs. 13.00 lakhs have been levied in aggregate, including Rs. 5.00 lakhs on the company, which converts to 1.30 million (1.30 mn) and 0.50 million (0.50 mn) respectively. The filings indicate that the total levies were apportioned among applicants, promoter directors and former directors and personnel as specified in the interim orders.

The company assessed that the interim orders do not have any material impact on its financials, operations or other activities. Management compliance and disclosure protocols will be followed as the compounding process proceeds through the statutory remedy framework. The company will continue to engage with the authorities and provide updates to stakeholders in accordance with regulatory requirements.