Paradeep Phosphates faces ₹93.59 crore penalty in customs adjudication order

Paradeep Phosphates Limited has disclosed an adjudication order passed by the Office of the Commissioner of Customs, Goa. The order pertains to the import of seven consignments of Prilled Urea, where the authority held that the imported goods did not qualify as Technical Grade Urea due to a biuret content exceeding 0.80%.

Consequently, the goods were ordered to be confiscated under Sections 111(d) and 111(m) of the Customs Act, 1962. The authority has imposed a redemption fine of ₹23.26 crore under Section 125(1), a penalty of ₹46.52 crore under Section 112(a)(i), and a penalty of ₹23.81 crore under Section 114AA of the Customs Act, 1962, aggregating to a total of ₹93.59 crore. The goods had an assessable value of ₹465.23 crore.

The company received the order on August 20, 2026. Paradeep Phosphates disputes the findings, stating that the principal basis for the allegation was the Biuret content. The company maintains that test certificates from independent surveyors at the load port generally reported biuret content within the applicable limit for Technical Grade Urea. They contest the reliance on post-clearance factory test results, arguing they were not generated according to prescribed procedures. The company believes it is fully compliant with laws and regulations and will pursue appropriate legal recourse against the adjudication order. The order is not expected to have any material operational impact on the ongoing business operations.