Dubai court upholds asset attachment order in UAE for Honasa; shares fall
In a statement to the stock exchanges, Mamaearth parent Honasa Consumer clarified that the Dubai court order will not have any financial impact on the company.
Beauty and personal care giant Honasa Consumer said in a regulatory filing that a Dubai court upheld its previous order to attach the company’s UAE assets.
Honasa, the parent company of Mamaearth, shared the order after the Dubai Court rejected the company’s and RSM General’s grievance statements.
Shares of the company closed 4.96% lower at Rs 425 apiece on NSE.
The court rejected a grievance filed by RSM General, a former distributor of Mamaearth products in the MENA (Middle East and North Africa) region, to cancel the trading license of Honasa Consumer General Trading LLC in Dubai, UAE. It was refused on the grounds that Honasa Consumer General Trading LLC is a separate legal and financial entity and is not related to Honasa.
However, the Dubai court ordered attaching Honasa’s assets in Dubai in connection with the 25 million AED (approximately Rs 57 crore) compensation the company was ordered to pay by the Court of First Instance, Dubai.
“Dubai Court on 06th June 2024 allowed to attach Honasa Consumer Limited’s assets in UAE, however, it rejected to cancel the trading license of Honasa Consumer General Trading LLC,” the filing read.
In a statement to the stock exchanges, Honasa Consumer clarified that this order will not have any financial impact on the company. "The Delhi High Court has instructed RSM to halt any execution proceedings in Dubai and to deposit approximately Rs 57 crore with the court registry," the company stated.
The statement further mentioned that if RSM's actions in Dubai are successful, the deposited amount will be returned to Honasa.
Edited by Jyoti Narayan
