Honasa, the Parent Company of Mamearth, Has Been Ordered to Pay an INR 57 Crore Fine to Its UAE Distributor

Honasa was ordered by a UAE court to compensate a former distributor for unlawful contract termination, totaling INR 56.6 Cr.

RSM General Trading was Honasa’s distributor in the Middle East and Africa markets from July 30, 2020 to January 17, 2023.

Honasa has been ordered by the UAE’s Court of Full Commercial Jurisdiction (Court of First Instance) in Dubai to pay compensation to RSM General Trading.

Honasa, on the other hand, claims that the court’s verdict is without merit and hence irrelevant to its operations.

A few months before Honasa went public in India, the company cut its connections with the distributor.

It was trying to increase its presence in the UAE at the time through strategic acquisitions or organic growth.