Vishnu Prakash R Punglia Limited (VPRPL), an ISO 9001:2015 certified company, has informed the stock exchanges regarding the receipt of a Show Cause Notice (SCN) from the Securities and Exchange Board of India (SEBI). The notice was received on March 24, 2025, under Rule 4(1) of the SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995.

Background of the Communication

The Show Cause Notice follows a judgment pronounced by the Hon'ble High Court of Rajasthan at Jodhpur related to a writ petition filed by VPRPL. SEBI has now initiated Adjudication Proceedings under Section 15 I of the SEBI Act, 1992 for alleged violations of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations).

Alleged Violations and Non-Compliance

SEBI has identified two instances of non-compliance by Vishnu Prakash R Punglia Limited:

1. Delayed Disclosure of Government Actions:

   • VPRPL failed to disclose actions taken by the Public Health Engineering Department (PHED), Government of Rajasthan, through orders dated June 22, 2024 (3 orders) and June 24, 2024 (4 orders), within the prescribed timelines.

   • These disclosures were eventually made on January 01, 2025, with a delay exceeding 6 months.

2. Failure to Disclose Litigation Updates:

   • VPRPL did not disclose the pendency of litigation after becoming a party to the case, including the following:

     • Stay Order by the Hon’ble High Court of Jodhpur dated July 03, 2024.

     • Final Order by the Hon’ble High Court of Jodhpur dated December 13, 2024.

   • These disclosures were not made within the timelines prescribed under the SEBI LODR Regulations.

Key Regulations Involved

The Show Cause Notice cites potential violations of the following provisions:

• Regulation 30(2) read with Part A, Para A, Sub-Para 20 of Schedule III – Mandates timely disclosure of significant events or information.

• Regulation 4(1)(d) and Regulation 30(3) read with 30(4)(i)(c) and Part A, Para B, Sub-Para 8 of Schedule III – Governs disclosure of material litigation or regulatory actions.

Timeline and Expected Response

• Date of Receipt of Communication: March 24, 2025

• Timeframe for Reply: VPRPL is required to submit its response to SEBI within 14 days of receiving the notice.

• Ongoing Review: The company is currently analyzing the contents of the Show Cause Notice and will submit an appropriate response along with all relevant supporting documents.

Financial Implications and Potential Penalties

While no penalties have been imposed as of now, SEBI has indicated that if the alleged violations are established, VPRPL may face:

• Monetary Penalty: As prescribed under Section 15A of the SEBI Act, 1992, for failure to make timely disclosures.

• Reputational Impact: Delayed disclosures may also affect investor perception and regulatory compliance standing.

Actions Initiated by VPRPL

In its formal response, VPRPL has acknowledged receipt of the Show Cause Notice and confirmed that:

• The company is analyzing the notice and allegations raised by SEBI.

• VPRPL is preparing a comprehensive reply to address the issues highlighted in the notice.

• The company is collaborating with legal advisors to ensure a well-documented and accurate response.

Compliance with SEBI Regulations

VPRPL has emphasized that the company remains committed to complying with Regulation 30(13) of the SEBI LODR Regulations, 2015, and ensuring that all information disclosed is true, correct, and complete to the best of its knowledge.

Conclusion

The receipt of the Show Cause Notice from SEBI highlights the importance of timely compliance with disclosure norms under the SEBI LODR Regulations. Vishnu Prakash R Punglia Limited is actively addressing the notice and is in the process of responding to SEBI with appropriate explanations and supporting documents. The outcome of the adjudication proceedings will determine whether any penalties or sanctions are imposed.

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