Shares of Aarti Pharmalabs Limited declined 2.25% to ₹676.65 on January 3 after the Gujarat Pollution Control Board (GPCB) directed the company to halt manufacturing activities at its Vapi plant, citing violations under the Water (Prevention and Control of Pollution) Act, 1974.
Key Details:
- Closure Order: GPCB issued the directive on January 2, 2025, under Section 33(A) of the Water Act, mandating an immediate cessation of operations at the Vapi plant.
- Bank Guarantee: The company has been asked to submit a bank guarantee of ₹2.5 lakh for compliance assurance during the revocation process.
- Environmental Damage Compensation: Aarti Pharmalabs is required to deposit an interim Environment Damage Compensation amount, as determined by GPCB.
- Financial Impact: The financial repercussions are currently unquantifiable. However, the closure could impact the company’s operations at the Vapi facility, located in Gujarat’s Valsad district.
Aarti Pharmalabs has assured stakeholders that immediate measures are being taken to address the regulatory concerns. The incident underscores the need for stringent environmental compliance in industrial operations.
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Aarti Pharmalabs