Everest Kanto Cylinder fined ₹11.29 crore by Kandla SEZ for NFE shortfall
Everest Kanto Cylinder Limited (EKC) was fined ₹11.29 crore by Kandla SEZ for failing to achieve cumulative positive Net Foreign Exchange (NFE) during 2020-21 to 2024-25. The company will deposit the amount.
The penalty of ₹11.29 crore is a material financial impact on the company's profit and loss statement. However, the more severe action of canceling the Letter of Approval was dropped, mitigating the long-term operational impact.
A significant penalty of ₹11.29 crore has been levied against the company for non-compliance with SEZ rules, which will negatively impact its financials.
* Everest Kanto Cylinder Limited (EKC) received an Order on October 29, 2025, from the Office of the Development Commissioner, Kandla Special Economic Zone (KASEZ). * The order, dated October 27, 2025, was issued under Rule 53, 25, 54(2) of SEZ Rules 2006. * A penalty of ₹11.29 crore (equivalent to 1% of the shortfall in FOB value) has been levied on the company. * The penalty is for non-achievement of cumulative positive Net Foreign Exchange (NFE) for the five-year block period from 2020-21 to 2024-25. * The company's Statement of Profit and Loss will be impacted to the extent of this amount. * EKC has stated that it will deposit the penalty amount as directed by the authority within the stipulated timeline or any extended timeline. * The proposed proceedings for the cancellation of the Letter of Approval (LoA) under Section 16 of the SEZ Act, 2005, were dropped, but the company was warned against any future repetition of such contravention.
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Everest Kanto Cylinder Limited filed this with the NSE as a statutory disclosure, categorised under regulatory impact. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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