In a recent disclosure to stock exchanges on May 2, 2025, ITI Limited, a government-owned telecom equipment manufacturer, has informed that it has received a further tranche of ₹50 crores from the Centre for Development of Telematics (C-DOT) under the revised terms of the Alternate Mechanism for Resolution of Commercial Disputes (AMRCD) proceedings related to a land dispute.

This development marks a significant update to an ongoing legal and financial matter between ITI Limited and C-DOT, which has been under regulatory review for several months.

Background of the Land Dispute

The dispute concerns a 22.258-acre parcel of land located in Electronic City, Bangalore, originally under ITI Limited’s possession. Earlier communications, including a letter dated July 12, 2024, had notified the exchanges about the AMRCD proceedings that were initiated to resolve the long-pending issue regarding the ownership and transfer of the said land.

The AMRCD, an inter-ministerial dispute resolution mechanism for government undertakings, has now issued a revised order, wherein ITI Limited is required to transfer the land to C-DOT via a formal sale deed for a total consideration of ₹200 crores.

Current Status and Payment Details

According to the company’s latest filing, ITI Limited has now received ₹50 crores, adding to the earlier payments made, under the executed sale agreement. This brings the total amount received so far to a considerable portion of the agreed ₹200 crores. However, the remaining balance is contingent upon completion of certain statutory formalities, which include registration, compliance checks, and potentially approvals from local authorities or central regulatory bodies.

ITI has clarified that it expects the remaining sum to be disbursed once these formalities are fulfilled. No specific timeline has been provided in the disclosure for when the final payment will be received.

Implications for ITI Limited

This financial infusion of ₹50 crores provides short-term liquidity support to ITI Limited, which has been working on financial restructuring and revival strategies under government supervision. As a strategic PSU in the telecom sector, ITI has been facing operational and financial challenges in recent years, making such one-time inflows crucial for its cash flow and working capital requirements.

The land parcel in question is located in one of Bangalore’s prime technology zones, Electronic City, which adds significant commercial value to the transaction. By executing the sale, ITI Limited is likely to clean up a portion of its balance sheet while settling disputes that may have implications on its asset monetization roadmap.

Compliance with SEBI LODR Regulations

The disclosure has been filed under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates listed companies to promptly disclose material events to the stock exchanges.

ITI Limited has assured that this update has been uploaded on the company’s official website (https://www.itiltd.in) and will remain available for public reference.

Market Response and Forward-Looking Statements

While the financial markets had already priced in some developments related to this land dispute, the formal confirmation of a ₹50 crore tranche being received may lend short-term positive sentiment around the company’s stock performance. Investors will also closely monitor future filings regarding the final tranche and the formal execution of the sale deed.

This transaction is particularly significant in the context of ITI Limited’s asset monetization strategy, where land assets are being leveraged to generate funds needed for modernizing telecom manufacturing infrastructure and meeting operational commitments.

Conclusion

The receipt of ₹50 crores from C-DOT is a positive milestone in the ongoing land dispute between the two government entities. As ITI Limited prepares to complete the final legal and statutory steps, the total realization of ₹200 crores from the land transfer would mark a major step in its broader financial restructuring efforts.

The company’s proactive disclosure and regulatory compliance demonstrate its intent to keep stakeholders informed and to operate with transparency in line with SEBI’s expectations. Further updates will be awaited with respect to the timeline for final payment and legal closure of the transaction.

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