Reliance Industries has been hit with a ₹17 lakh customs penalty over alleged duty-related violations.
The order comes just days after US President Trump announced the company's linkage to the Texas oil refinery plans.
Reliance has indicated it may challenge the order, stating the financial impact is not material to its overall operations.
Reliance Slapped With ₹17 Lakh Customs Order Days after Trump's Texas Oil Refinery Nod
Reliance intends to file an appeal against the latest customs duty order. "The financial impact of the order is to the extent of the redemption fine and penalty levied. There is no impact on operations or other activities of the company due to the order," the firm said in an exchange filing
Reliance CEO Mukesh Ambani
Summary
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Mukesh Ambani's Reliance Industries has received a ₹17 lakh customs duty order from the Additional Commissioner of Customs at Mundra port. The order alleges that the company paid less than the required customs duty by incorrectly categorising certain imported goods in its official paperwork.
The news had little effect on investor sentiment as Reliance shares actually opened slightly higher on Wednesday at ₹1,402.90, up 0.4%, and climbed further to ₹1,411.50, a gain of about 1%, during the morning trade.
The order comes just a week after US President Donald Trump publicly praised Reliance for its involvement in a massive oil refinery project planned in the state of Texas. Trump described Reliance Industries, India's largest privately owned energy company, as a key investment partner in the project, which has a stated value of $300 billion.
Notably, Reliance intends to file an appeal against the latest customs duty order. "The financial impact of the order is to the extent of the redemption fine and penalty levied. There is no impact on operations or other activities of the company due to the order," the firm said in an exchange filing.
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(This is a developing story.)