Afcons Infrastructure has received a penalty order of ₹16.48 Crores from the Tahsildar, Bhiwandi, Maharashtra, regarding alleged irregularities in earth excavation and removal activities. The order pertains to operations in the Mouje Purna and Rahanal area relating to the MML5 Project. The company disclosed that there is no financial impact on operations at this stage and intends to contest the order by filing an appeal before the competent authority.

The disclosure was made to the exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notice was received by the company on July 06, 2026.

Details of the Order

The penalty order was issued by the Tahsildar, Bhiwandi, concerning specific activities under the MML5 Project. The company has categorised the financial impact as nil at the current juncture.

Company Response

Afcons Infrastructure has stated that it is taking appropriate steps to file an appeal against the order before the competent authority. The company confirmed that there are no changes in the status of litigation against key management personnel, promoters, or the ultimate person in control regarding this matter.

Afcons Infrastructure has received a favourable arbitration award of ₹148.67 crores pertaining to claims arising out of a tunnel project. The Arbitral Tribunal has also directed the release of the company's bank guarantee, a development that is expected to have a positive impact on its financial position. The award was received on June 30, 2026, and is subject to the condition that the counter-party does not challenge the award within the stipulated period prescribed under law.

Arbitration Award Details

The dispute relates to the Construction of Tunnel T74-R balance work from Adit between Km 127/660 to Km 130/950 (length 3290m) on the Dharaam-Qazigund section of the USBRL Project (Package – T-74R-A) at Jammu and Kashmir. The Arbitral Tribunal granted the award in favour of the company, resolving the claims associated with this infrastructure project.

The company submitted the intimation to BSE Limited and National Stock Exchange of India Ltd pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was made by Gaurang Parekh, Company Secretary and Compliance Officer.