Dwarikesh Sugar Industries Limited has been directed to pay a total penalty of Rs 5 lakh after the State Excise Department identified a shortfall in the prescribed molasses storage capacity at its two Uttar Pradesh units. The notification was received by the company on February 9, 2026.
According to the company’s filing with the stock exchanges, the Assistant Excise Commissioner (Molasses) confirmed that both the Dwarikesh Nagar Unit in Bundki and the Dwarikesh Puram Unit in Afzalgarh were found to have insufficient molasses storage under applicable excise regulations. A penalty of Rs 2.5 lakh was imposed on each unit.
The company stated that the financial impact is limited to the compounding amount and noted there is no material effect on its operations or other business activities.
