Disclosure under Regulation 30 of SEBI Listing Regulations

Background and Operational Cessation

The corporation held a 99-year lease dated February 12, 1929 for its Singampatti tea estate. In December 2023, the corporation determined that continued leasehold rights were unviable and consequently:

  • Ceased all plantation and factory operations effective June 16, 2024
  • Introduced a Voluntary Retirement Scheme for 534 workers
  • All VRS dues have been paid to workers or deposited with the Assistant Commissioner of Labour (Plantation) for disbursement

Legal Proceedings Timeline

  • Workmen challenged the cessation through Writ Petitions before Madurai Bench of Madras High Court seeking rehabilitation
  • Madras High Court judgment dated December 3, 2024 declined reliefs to workmen
  • Civil Appeal No. 6395-6397 of 2025 filed by A John Kennedy challenging the High Court judgment

Land Handover Progress

  • On May 8, 2025: Corporation handed over 8,152.13 acres out of total 8,373.57 acres to State Forest Department
  • Temporarily retained 221.44 acres comprising bungalows and factory buildings for removing movables
  • On July 11, 2026: Corporation demobilized all movables, dismantled machineries, demolished factory buildings, and handed over the remaining 221.44 acres to Forest Department on "as is where is" basis

Supreme Court Order Dated May 29, 2026

The Hon'ble Supreme Court of India in Civil Appeal Nos. 6395–6397 of 2025 (A. John Kennedy and Others vs. State of Tamil Nadu and Others):

  • Noted substantial progress in handing over plantation land to State Forest Department
  • Recorded steps undertaken for dismantling factory structures
  • Noted completion of VRS settlement disbursements through Assistant Labour Commissioner, Nagercoil
  • Recorded that certain lease rentals "remain to be recovered" based on Central Empowered Committee report

Lease Rent Dispute Details

The CEC report references an unapproved internal calculation of lease rent amounting to ₹4,655 crores by a department that the corporation believes has no jurisdiction. Key facts:

  • No communication or demand received by corporation based on this calculation
  • Madras High Court had earlier quashed State Government demands of ₹231.9 crores
  • Matter remanded to Deputy Director, Project Tiger, Ambasamudaram for re-quantification
  • Timeline set: Notice to be issued by September 8, 2025, proceedings concluded by October 15, 2025
  • Corporation retains right to contest on merits, jurisdiction, and other legal grounds

Current Corporate Action

On July 21, 2026, the corporation filed a detailed Interlocutory Application before the Supreme Court seeking:

  • Recall and expunging of observations pertaining to lease rent contained in the May 29, 2026 order
  • Basis: Civil appeals did not pertain to lease rent issue, no notice/demand served, no hearing opportunity provided

Ongoing Commitment

The corporation will continue to inform stock exchanges of any material developments in compliance with SEBI Listing Regulations.