Sapphire Foods India Limited has recently received a demand notice from the Employees’ State Insurance Corporation (ESIC) for an outstanding amount of INR 6.35 million. The notice, dated October 17, 2025, was delivered to the company on November 6, 2025, and pertains to alleged non-payment of ESI contributions by A.N. Traders Private Limited (ANTPL). This situation stems from a business transfer agreement executed by Sapphire Foods and ANTPL in August 2016, with the ESIC claiming dues for the period prior to that agreement.

The demand notice indicates that the alleged outstanding dues, which include interest and damages, are linked to contributions that were not paid by ANTPL. This action falls under Sections 93A and 45(c) to 45(l) of the ESIC Act, 1948. Despite the serious nature of the notice, Sapphire Foods has stated that there is no material impact on its financial or operational activities as a result of this notification. The company reassured stakeholders that it is currently assessing the notice and will take necessary measures, including potentially challenging the recovery demand through appropriate legal channels.

Sapphire Foods, which is listed on both the National Stock Exchange and BSE under the symbols SAPPHIRE and 543397, is committed to managing this situation effectively. The company maintains that it will keep the market informed and comply with regulatory requirements as it navigates this demand from the ESIC. Stakeholders can expect updates as the company evaluates its options and prepares its response to the notice.