Avenue Supermarts Receives ₹1 Lakh Penalty Order from Ghaziabad Authority for Alleged Sale of Substandard Product

Avenue Supermarts Limited has disclosed that a local authority in Ghaziabad has imposed a monetary penalty on the company in connection with the alleged sale of a substandard food product at one of its stores. 

The order was issued under provisions of the Food Safety and Standards Act, 2006. The company stated that the product in question was manufactured by another entity and confirmed that the financial impact is limited to the penalty amount.

Regulatory Order Issued by Ghaziabad Authority

The order has been passed by the Adjudicating Officer and Additional District Magistrate (City) of Ghaziabad in Uttar Pradesh. The authority reviewed the matter under the regulatory framework governing food safety standards.

As part of the directive, the authority imposed a penalty on both the retailer and the manufacturer associated with the product.

Details of the Penalty

According to the disclosure, the authority has instructed the company to pay a penalty of ₹1,00,000. The order was received by the company on 10 March 2026.

The penalty relates to a product that was found to be allegedly substandard under applicable food safety regulations. The item had been manufactured by a different company but was sold through one of Avenue Supermarts’ retail outlets.

Nature of the Alleged Violation

The order cites violations of certain provisions of the Food Safety and Standards Act, 2006. The issue concerns the sale of a product that did not meet the prescribed quality standards.

The company clarified that it acted as the retailer and that the product had been produced by another manufacturer.

Impact on Company Operations

Avenue Supermarts stated that the financial implication of the order is restricted to the penalty amount imposed by the authority.

The company also noted that the directive does not have any material impact on its operations, financial position or other business activities.

Avenue Supermarts Share Price Performance

Shares of Avenue Supermarts Limited were trading at ₹3,964.00 on 11 March 2026 at 11:14 AM IST, reflecting a gain of ₹17.20 or 0.44% from the previous close of ₹3,946.80. During the trading session, the stock opened at ₹3,946.80 and moved to an intraday high of ₹3,992.00, while the day’s low remained at ₹3,946.80.

Read More:Protean eGov Share Price in Focus as Company Receives Sales Tax Appeal Orders Related to PAN Services.

Conclusion

The regulatory order against Avenue Supermarts relates to the sale of a product that allegedly failed to meet prescribed food safety standards. While the company has been directed to pay a monetary penalty, it indicated that the impact is limited and does not affect its broader operations. The disclosure forms part of the company’s compliance with regulatory reporting requirements.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks. Read all related documents carefully before investing.