On May 2, 2025, SEPC Limited issued an update regarding a Supreme Court order from April 29, 2025, that impacts the company’s ongoing legal proceedings with Twarit Consultancy Services Private Limited. This update follows the earlier intimation provided by SEPC on May 20, 2024, concerning the same matter.

The Hon’ble Supreme Court of India, in its hearing on April 29, 2025, directed that a sum of Rs 120 Crores be deposited within two days to the Registrar of the Court by the Respondent, Twarit Consultancy Services Private Limited. This payment is part of a legal settlement related to an arbitral award. The deposit was successfully made on May 1, 2025.

Legal and Financial Implications for SEPC Limited

SEPC Limited has clarified that the company will not experience any financial impact from this order. The company had entered into an indemnification agreement with Twarit Consultancy Services Private Limited and Shri Housing Private Limited on September 29, 2015. According to this agreement, SEPC is fully indemnified against any financial obligations arising out of the arbitral award.

As per the order, the Respondent No. 1, Twarit Consultancy Services, deposited the demand draft for Rs 120 Crores on May 1, 2025, with the Supreme Court’s Registrar. This payment is in compliance with the Court's directive and is a significant step in the ongoing legal matter.

SEBI and Stock Exchange Compliance

In adherence to the Securities and Exchange Board of India (SEBI) guidelines, specifically SEBI circular no. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, SEPC Limited has provided additional details regarding the order in Annexure I of the disclosure. These details ensure compliance with SEBI’s Listing Obligations and Disclosure Requirements (LODR).

The company has outlined that there has been no violation of laws or regulations in relation to the Supreme Court's order. The legal compliance process is ongoing, and SEPC Limited is committed to keeping stakeholders informed.

Next Steps and Future Legal Action

Following the receipt of the formal order, the company is reviewing the implications with its legal advisors. While the financial obligations are indemnified, the legal team is assessing the broader impacts of the case on the company’s operations.

The matter will be re-listed in the week commencing May 19, 2025, and SEPC Limited will continue to keep the stock exchanges and investors informed of any further developments as required under applicable laws.

This update serves to reassure investors and stakeholders that the legal proceedings, although significant, are unlikely to impact the company's financial standing, thanks to the robust indemnification agreements already in place. The company remains focused on complying with all legal requirements and ensuring transparency in its dealings.

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