United Spirits Limited has received seizure memos from the Directorate of Revenue Intelligence (DRI) involving goods worth Rs 6.45 crore. The dispute relates to customs tariff classification under the India-UK Free Trade Agreement. The company confirms that operations remain unaffected and is seeking provisional release of the goods.
United Spirits Reports DRI Seizure Memos Valued at Rs 6.45 Crore
The Directorate of Revenue Intelligence (DRI) has issued seizure memos for goods valued at approximately Rs 6.45 crore.
The company is currently seeking the provisional release of these goods while maintaining normal business operations.
Reader Takeaway: The company faces a customs classification dispute, though it maintains operations remain stable and unaffected.
What just happened
United Spirits Limited has informed the stock exchanges of an ongoing investigation by the Directorate of Revenue Intelligence (DRI). Following a search of company premises conducted on October 16, 2026, the DRI issued formal seizure memos under Section 110 of the Customs Act, 1962. The company received these specific memos on October 30 and November 4, 2026.
Why this matters
The investigation centers on an industry-wide dispute regarding the correct customs tariff classification for imported goods, specifically concerning preferential treatment under the India-UK Free Trade Agreement. Because the issue extends beyond United Spirits, industry associations have engaged with the Ministry of Commerce to seek a resolution. The company has acknowledged an unintentional delay in disclosing the receipt of the seizure memos to the exchanges, noting that it acted as soon as senior management was made aware of the formal action.
Management Position and Operational Impact
United Spirits management has emphasized that there is no material impact on its business operations. The company is cooperating with authorities and is actively working to secure the provisional release of the seized inventory. There has been no reported disruption to supply chains or manufacturing as of this filing.
Risks to watch
While the financial exposure of Rs 6.45 crore is relatively small compared to the company’s scale, the formal regulatory action by the DRI presents a compliance risk. Investors should monitor whether this classification dispute results in further tax liabilities, penalties, or long-term changes to the company's import cost structures.