Popular Vehicles and Services shares slide as subsidiary faces show cause notice from Tamil Nadu PCB

Shares of Popular Vehicles and Services Limited on Wednesday, June 26, slipped 2.6% to an intraday low of ₹240.50 on the NSE on Wednesday, June 26, after the Tamil Nadu Pollution Control Board gave its subsidiary a show-cause notice.

In an exchange filing dated June 25, Popular Vehicles and Services said that the District Environmental Engineer of the Tamil Nadu Pollution Control Board in Tiruvallur has issued the show cause notice to its subsidiary Popular Mega Motors (India) Private Limited.

According to the filing, the notice is in connection with alleged violations that include using an inoperable effluent treatment plant, resulting in the untreated discharge of trade effluent onto land, which poses a significant environmental hazard.

The company allegedly failed to obtain the required authorisation under the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016. Furthermore, hazardous wastes were reportedly being disposed of in a disorderly manner, leading to spills and further environmental contamination.

Popular Vehicles and Services Limited said the show cause notice is not expected to have any immediate financial or operational impact on the company. It added that the notice requires a response within seven days from receipt.

Shares of Popular Vehicles and Services closed at ₹247.50, up 0.17%. The stock opened the session at ₹247.50, slightly above its previous close of ₹247.09, and briefly reached a high of ₹248.59 before reversing course and hitting the day’s low of ₹240.50.

The Tamil Nadu PCB’s order follows a recent incident at Popular Vehicles and Services Limited’s Kanhangad service centre in Kerala, where improper handling of plastic waste led to a fine of ₹5,000. Popular Vehicles and Services Limited informed in a separate exchange filing on June 21 on the action taken on orders issued by the District Enforcement Squad, District Suchitwa Mission, at its service centre in Kerala. The company said despite the enforcement action and the penalty, its operations remain unaffected.