NEW DELHI: Honasa Consumer Ltd, owner of the Mamaearth brand, stated on Saturday that there will be no attachment of its assets in the UAE, as it has no assets located there.
This follows a Dubai court’s order for asset attachment in an ongoing litigation with RSM General Trading LLC regarding the termination of their distributorship.
In a regulatory filing, Honasa clarified, “There shall be no attachment of the company’s assets, as the company has no assets located in the UAE.”
Additionally, it noted that Honasa Consumer General Trading LLC, a subsidiary, has been exempted from the court’s order.
The dispute stems from a precautionary attachment order issued by the Court of Merits in Dubai on June 6, 2024. Both RSM and Honasa had filed appeals against this order, which were subsequently rejected by the Dubai court.
Initially, the court had ordered the attachment of Honasa’s assets due to a AED25 million compensation claim by RSM. However, it refused to cancel the trading licence of Honasa Consumer General Trading LLC, citing that it is a separate legal entity not connected to Honasa.
RSM General Trading LLC had filed a lawsuit against Honasa in Dubai, alleging unlawful termination of its distributorship. Honasa has announced its intention to appeal the recent court order and stated that there will be no adverse financial impact until the appeal is resolved.
