United Spirits Limited Settles Decades-Old Customs Penalty with INR 0.33 Crore Payment

Bengaluru, January 29, 2025 – United Spirits Limited (BSE: 532432, NSE: UNITDSPR), a subsidiary of Diageo India, has announced the settlement of a 28-year-old customs penalty amounting to INR 0.33 crore imposed on Shaw Wallace & Co. Ltd., which merged with United Spirits in FY 2007-08.

Background of the Case​

• The Office of the Principal Commissioner of Customs (Preventive), Chennai, had issued a penalty on April 30, 1996, against Shaw Wallace & Co. Ltd. due to the short landing of goods at Chennai Customs Port.
• The company received reminder letters on July 15, 2024, and October 22, 2024, requesting payment for the pending dues.
• Given the multiple management transitions over the years, United Spirits took time to verify the authenticity of the demand before reaching a settlement.

Final Settlement & Corporate Responsibility​

• The payment of INR 0.33 crore was made on January 27, 2025, at 13:07 hrs.
• The company emphasized its commitment to good corporate governance and resolved the matter in consultation with its legal advisors.
• Despite retrieving historical records, the company settled the case responsibly despite difficulties.

Financial & Operational Impact​

United Spirits stated that this settlement will have a minimal impact on its financials and operations. The company maintains that it remains focused on business continuity and regulatory compliance.

Conclusion​

By settling this long-standing customs dispute, United Spirits Limited has demonstrated its commitment to regulatory compliance and corporate responsibility. The company aims to move forward with a clean slate and ensure compliance with all financial and operational regulations.