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Som Distilleries License Suspended by MP Excise Dept; Company Pursues Legal Recourse
Som Distilleries & Breweries Limited
February 5, 2026, 12:00 PM
Som Distilleries' manufacturing license suspended by MP Excise Dept due to a 2012 case. The company states it's not a party to the case and is pursuing legal recourse. Production at the Rojrachak unit has ceased temporarily, but financial stability and operations are unaffected. The company expects the Bhopal plant to commence operations soon.
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Som Distilleries and Breweries Limited (SDBL) has addressed media reports regarding regulatory action by the Excise Department of Madhya Pradesh. The company clarifies that an arbitrary action has been taken by the Excise Commissioner, Madhya Pradesh, based on a 2012 case to which SDBL was not a party. The judgment pertains to individuals not employed by the company at the time, and the matter is currently under appeal before the Hon'ble High Court of Madhya Pradesh, which has stayed the judgment and sentences.
The company acknowledges the suspension of its manufacturing unit license in connection with this historical case. SDBL is pursuing appropriate legal recourse before the Hon'ble High Court of Madhya Pradesh at Jabalpur. The company continues to contest the matter and will disclose any material outcomes.
Management assures stakeholders that the case relates to legacy issues and does not reflect the company's current governance or control environment. SDBL remains a going concern with strong business fundamentals, and there is no impact on its financial stability, liquidity, or debt servicing ability. Banking obligations and covenants continue to be met on time. Operations, management oversight, and compliance systems have been significantly strengthened over the years.
The suspension affects the company's factory at Rojrachak, District Raisen (M.P.), and production at this unit has temporarily ceased. SDBL expects operations at the Bhopal plant to commence at the earliest. The company is committed to the highest standards of corporate governance, transparency, and regulatory compliance, and remains confident in a favorable resolution and the intactness of its long-term business prospects.
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