UDPL attributes filing delay to internal issues

July 05, 2024 (MLN): United Distributors Pakistan Limited (PSX: UDPL) has attributed its failure to submit a timely exemption application to internal delays in gathering necessary information, a lapse that ultimately led to a Rs21 million penalty imposed by the Competition Commission of Pakistan (CCP).

According to the company’s disclosure to the Pakistan Stock Exchange, the exemption was required for a non-compete agreement with International Brands (Private) Limited (IBL).

While the agreement’s implementation was contingent on CCP’s clearance, the delay in filing the exemption allowed the regulator to issue show-cause notices, citing that UDPL had already received consideration under the arrangement.

Despite the late filing, UDPL emphasized its consistent transparency and stated that the exemption application is now pending with the CCP.

The company is currently reviewing the order and exploring legal remedies, asserting that it has acted in good faith throughout the process.

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