Afcons Infrastructure Limited has announced receipt of a favorable arbitration award worth ₹3.35 crore in a long-standing dispute with Oil and Natural Gas Corporation Limited (ONGC). The award represents a significant legal victory for the infrastructure company's joint venture operations.

Arbitration Award Details

The arbitration case involved claims and counterclaims between Afcons Gunanusa Joint Venture (AGJV) and ONGC related to the ICPR Process Platform project. AGJV is a joint venture between Afcons Infrastructure and PT Gunanusa Utama Fabricators, Indonesia.

Tribunal Decision Outcomes

The Arbitral Tribunal delivered a comprehensive decision that favored AGJV on multiple fronts. The tribunal awarded ₹3.35 crore against some of the claims filed by AGJV while completely rejecting all counterclaims presented by ONGC. Additionally, the tribunal directed ONGC to release the bank guarantee that had been provided by AGJV, providing further financial relief to the joint venture.

Current Status and Management Response

Afcons Infrastructure received the arbitration award via email on March 17, 2026, seven days after it was passed by the tribunal. The company has identified certain apparent errors and omissions in the arbitration award, prompting management to conduct a thorough evaluation of the financial implications and explore available legal options.

Financial Impact Assessment

The company's management is currently assessing the complete financial impact of the arbitration award. Afcons Infrastructure has indicated that appropriate accounting treatment will be considered and implemented in the forthcoming financial statements, ensuring proper reflection of the award's impact on the company's financial position.

This arbitration victory strengthens Afcons Infrastructure's position in project-related disputes and demonstrates the company's commitment to protecting its interests through proper legal channels. The resolution of this matter removes a significant contingent liability while providing monetary compensation for the joint venture's claims.

Afcons Infrastructure Limited has successfully completed the redemption of its commercial paper worth Rs. 55.00 crores on March 16, 2026. The company informed both BSE Limited and the National Stock Exchange of India about the full redemption of the debt instrument on its scheduled maturity date, providing a compliance certificate under SEBI Master Circular regulations.

Commercial Paper Redemption Details

The infrastructure company redeemed the commercial paper that was originally issued on October 15, 2025, completing a tenure of approximately five months. The redemption was executed on the predetermined maturity date of March 16, 2026, following the earlier announcement of March 13, 2026 as the record date.

SEBI Compliance Certificate

Pursuant to Chapter XVII of SEBI Master Circular no. SEBI/HO/DDHS/DDHS-PoD/P/CIR/2025/0000000137 dated October 15, 2025, the company has provided a formal certificate confirming fulfillment of its payment obligations for the commercial paper redemption. The certificate was issued on March 16, 2026, the same date as the maturity and payment.

Regulatory Compliance and Documentation

The redemption notification and compliance certificate were signed by Gaurang Parekh, Company Secretary and Compliance Officer (Membership No.: F8764), and digitally executed on March 16, 2026. The communication to both BSE Limited (Scrip Code: 544280) and National Stock Exchange of India (Symbol: AFCONS) fulfills the company's regulatory disclosure requirements under applicable securities regulations.

The completion of this commercial paper redemption marks the successful conclusion of the debt instrument's lifecycle, demonstrating the company's commitment to honoring its debt obligations and maintaining regulatory compliance in the debt capital markets.