Avenue Supermarts Limited, the operator of the popular DMart retail chain, has informed stock exchanges that a penalty of ₹1 lakh has been imposed on the company by authorities in Ghaziabad, Uttar Pradesh.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which requires listed companies to report significant regulatory actions or legal developments.

The penalty relates to an alleged violation of provisions under the Food Safety and Standards Act, 2006, involving a product that was sold at one of the company’s retail stores.

The company clarified that the financial impact of the order is limited to the penalty amount, and that the issue does not materially affect its operations or business activities.

Order Issued by Ghaziabad Authority

The penalty order was issued by the Adjudicating Officer and Additional District Magistrate (City), Ghaziabad, Uttar Pradesh.

According to the company’s disclosure, the authority directed Avenue Supermarts Limited to pay a penalty of ₹100,000.

The company confirmed that it received the official communication regarding the order on March 10, 2026.

Regulatory authorities in India have the power to impose penalties under the Food Safety and Standards Act when products sold in the market fail to meet required quality standards.

Such actions are intended to protect consumers and ensure compliance with food safety regulations.

Alleged Violation Under Food Safety Law

The penalty was imposed in connection with an alleged substandard product sold at one of the company’s DMart stores.

However, the company clarified that the product in question was manufactured by another company, indicating that the retailer was not the manufacturer.

Retailers can still face regulatory action if products sold through their outlets are found to violate food safety standards.

The order refers specifically to certain provisions of the Food Safety and Standards Act, 2006, which governs the regulation of food products and quality standards across India.

The Act establishes guidelines to ensure that food products sold to consumers are safe, properly labelled, and compliant with prescribed standards.

Penalty Shared Between Retailer and Manufacturer

The regulatory order stated that both the company and the manufacturer of the product were penalised.

Such decisions are common in cases where a product sold in the market does not meet quality requirements.

Authorities may hold multiple parties accountable in the supply chain, including:

• Manufacturers

• Distributors

• Retailers

This ensures that all participants in the food supply chain maintain strict compliance with food safety norms.

Financial Impact on Avenue Supermarts

Avenue Supermarts clarified in its stock exchange filing that the financial impact of the order is limited to the ₹1 lakh penalty imposed by the authority.

The company also stated that there will be no material impact on its operations, financial position, or business activities as a result of the order.

Given the scale of Avenue Supermarts’ operations, the penalty amount represents a relatively small financial impact.

The company continues to operate hundreds of DMart stores across India, serving millions of customers.

Compliance and Regulatory Disclosure

The disclosure was made to the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in compliance with SEBI’s listing regulations.

Under Regulation 30 of SEBI (LODR) Regulations, companies must inform stock exchanges about:

• Regulatory penalties

• Legal proceedings

• Orders issued by government authorities

Such disclosures help ensure transparency and timely communication with investors and stakeholders.

The disclosure was signed by Ashu Gupta, Company Secretary and Compliance Officer of Avenue Supermarts Limited.

About Avenue Supermarts and DMart

Avenue Supermarts Limited is one of India’s leading retail companies and operates the DMart chain of supermarkets and hypermarkets.

Founded by entrepreneur Radhakishan Damani, the company has grown rapidly over the years and operates a large network of stores across multiple Indian states.

DMart stores focus on offering:

• Grocery and household products

• Packaged food items

• Apparel and general merchandise

The company has built a reputation for competitive pricing, efficient operations, and strong supply chain management.

Its retail model emphasises high inventory turnover, cost efficiency, and value pricing for customers.

Importance of Food Safety Compliance in Retail

Food safety compliance is a critical aspect of the retail business, especially for companies that sell packaged food and grocery products.

Retailers must ensure that products sold in their stores comply with regulations related to:

• Product quality standards

• Packaging and labelling requirements

• Storage and handling procedures

The Food Safety and Standards Authority of India (FSSAI) and local authorities regularly conduct inspections and enforce compliance across the supply chain.

Maintaining high food safety standards is essential for consumer trust, regulatory compliance, and brand reputation.

Conclusion

The latest disclosure from Avenue Supermarts Limited confirms that the company has been fined ₹1 lakh by the Ghaziabad district authority in connection with an alleged food safety violation.

The order relates to a substandard product manufactured by another company but sold at a DMart store, and the penalty has been imposed under provisions of the Food Safety and Standards Act, 2006.

The company has stated that the financial impact is limited to the penalty amount and that the matter does not have any material effect on its business operations.

The disclosure ensures compliance with SEBI’s regulatory requirements while keeping investors informed about the development.

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