Nature of the Disclosure

This is a mandatory regulatory disclosure submitted to the Bombay Stock Exchange Ltd. and the National Stock Exchange of India Ltd. pursuant to Regulation 30 read with sub-para 20, Para A, Part A, Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It concerns action taken by a foreign regulatory authority.

Details of Regulatory Action

The Government of Nepal, via its Public Procurement Monitoring Office, has published a blacklisting order against the joint venture RAMAN PATEL J.V. The joint venture partners are Patel Engineering Limited ("the Company") and Raman Construction Private Limited ("Raman").

  • Blacklisting Period: The blacklisting is effective from May 27, 2026, to May 26, 2029 (a three-year term).
  • Date of Order Publication: The order was published on the authority's website on May 27, 2025.
  • Project Involved: The action relates to the Sunkoshi Marin Diversion Multipurpose Project, Lot-1, which was under the Ministry of Energy, Department of Water Resources and Irrigation, Government of Nepal.

Background and Context

The Company entered into a Joint Venture Agreement with Raman Construction Private Limited for the purposes of bidding and executing the aforementioned project.

  • JV Shareholding: Raman is the lead partner with a 65% stake in the joint venture. Patel Engineering Limited holds a 35% stake.
  • Reason for Action: Disputes arose between the joint venture and the employer (the Government of Nepal entity) concerning their respective obligations under the contract. These disputes led to the termination of the contract and subsequently, the blacklisting of the joint venture.
  • Current Status: The disclosure states that all issues pertaining to the disputes are pending adjudication and remain sub-judice.

Stated Financial and Operational Impact

The company provides an assessment of the impact of this action:

  • Lead Partner Responsibility: The disclosure states that all project execution activities were the domain and responsibility of Raman, the lead partner of the JV.
  • Claimed Impact: Based on this, the company concludes that there is no material impact on its financials and operations from this blacklisting order.