ARCL Organics Limited, a listed company on the BSE (Scrip Code: 543993, ISIN: INE372M01010), has received an order from The Honourable National Green Tribunal (NGT), Eastern Zone Bench at Kolkata regarding a case of non-compliance related to its environmental clearance for expansion projects. The company has formally communicated this development in compliance with Regulation 30(13) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Details of the Order from NGT

On March 27, 2025, at 5:50 PM, ARCL Organics received a communication from the NGT Eastern Zone Bench at Kolkata concerning a case admitted against the company. The case pertains to the alleged non-compliance with environmental clearance for its expansion projects involving its Formaldehyde plant, Phenolic Resin plant, and Urea Formaldehyde plant.

The NGT order highlights that these plants were allegedly operating without obtaining the required Environmental Clearance (EC) from the State Environment Impact Assessment Authority (SEIAA), West Bengal, in violation of the prescribed siting criteria. Furthermore, the company is accused of violating the Environment Impact Assessment (EIA) Notification, 2006, by discharging toxic industrial effluents into municipal drains and vacant lands and dumping sludge and industrial waste near a populous vicinity, which allegedly caused the emission of toxic smoke and fumes.

Summary of the Allegations

• Non-compliance of Environmental Clearance: The plants in question, located at Budge Budge Trunk Road, Rampur, P.O.- Gobindapur, P.S.- Maheshtala, District- South 24 Parganas, have been accused of operating without the necessary clearance.

• Violation of SEIAA and EIA Regulations: The company allegedly did not adhere to siting criteria for the establishment of these plants, as well as other requirements under the EIA Notification.

• Toxic Waste and Pollution: Allegations also include the improper discharge of toxic industrial effluents and dumping of sludge and industrial waste in the vicinity, which has caused significant environmental hazards, including the emission of toxic fumes.

Company’s Response and Legal Actions

In response to the allegations, ARCL Organics Limited has taken immediate legal measures to address the concerns raised by the NGT. The company is committed to resolving the issue in a lawful manner and ensuring environmental compliance. The company is working with legal experts to evaluate the next steps and potential defenses, aiming to address the environmental compliance matters raised in the order.

Potential Financial Implications

At this point, the financial implications of the NGT order are still to be ascertained. The company has not reported any penalty or restriction being imposed as part of this communication, but this matter is still under review, and any future penalties or sanctions will be disclosed accordingly.

Action(s) Taken by the Company

ARCL Organics is actively working with legal authorities to resolve the matter and ensure all necessary steps are taken to meet the environmental standards and clearances. The company’s priority is to mitigate the situation by complying with all regulatory requirements.

Conclusion

ARCL Organics is currently addressing the allegations related to the non-compliance of environmental clearance for its expansion projects. The company remains committed to taking all necessary actions to ensure full compliance with environmental regulations and to resolve any issues raised by the NGT. The company will keep the market and its stakeholders informed about any further developments regarding this matter.

This disclosure serves to keep investors informed about the situation as required by SEBI regulations and the National Green Tribunal's directions. Further updates will be provided as the case progresses and the company’s legal course of action is clarified.

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