Nestle India gets tax penalty of Rs 69.45 lakh

Nestle India has been handed a penalty of Rs 69.45 lakh by the Commissioner of Customs (Appeals) in Mumbai, the company said in an exchange filing on Wednesday.

The penalty stems from a customs duty dispute, with the company having initially filed an appeal against a decision by the Deputy Commissioner of Customs.

However, the appellate authority upheld the original order, confirming the demand for the custom duty amount of Rs 69.45 lakh, along with the same amount as penalty.


The order, passed under Section 28 (4) and Section 28AA of the Customs Act, 1962, was received on March 25, 2025. While Nestle India has expressed its intent to explore options for challenging the order, the company has stated that the penalty will not materially impact its financials or operations.

Sebi hits Nestle India with notice

Earlier this month, market regulator SEBI issued a warning letter to the FMCG giant following an alleged violation of Insider Trading norms by one of the company's senior officials.

According to a regulatory filing on March 7, the company received an "administrative warning letter" from SEBI's Deputy General Manager concerning a breach of the SEBI (Prohibition of Insider Trading) Regulations, 2015. However, the identity of the person involved in the violation has not been disclosed by Nestle India.

In response, a Nestle India spokesperson had said that the issue would not have any material impact on the company's financial or operational standing.

The company reiterated that the information was shared in compliance with SEBI's Listing Regulations and assured stakeholders that the matter would not affect its overall business performance.

Insider trading, which involves buying or selling securities by company insiders like employees and executives, is considered a severe market violation, and SEBI enforces strict measures to ensure fair trading.