DCM Limited has received an arbitration notice from GCD Prime, escalating a dispute over a terminated Joint Development Agreement for a land project in Haryana. The company disclosed this development to stock exchanges on March 19, 2026, pursuant to SEBI listing regulations.

Arbitration Notice Details

The company received the arbitration notice on March 18, 2026, from GCD Prime through its advocates under Section 21 of the Arbitration and Conciliation Act, 1996. The notice invokes arbitration in terms of Clause 14 of the Joint Development Agreement (JDA) dated August 11, 2022.

Background of the Dispute

The arbitration stems from DCM Limited's earlier termination of the Joint Development Agreement with GCD Prime. On November 1, 2025, the company had issued a Notice of Forfeiture and Termination to the developer, citing inordinate delays and continuing breaches of obligations under the JDA.

The project involved setting up an affordable residential plotted colony under the Deen Dayal Jan Awas Yojna (DDJAY), 2016, on 67.275 acres of the company's land situated in Hisar, Haryana. A critical issue was GCD Prime's failure to obtain revocation of the suspension order of license issued by the Haryana Government for the project.

Project and Financial Implications

Under the terms of the original termination notice, DCM Limited had specified that amounts paid by GCD Prime under the JDA would stand forfeited, and the agreement would terminate 15 days after receipt of the notice.

Regulatory Compliance

DCM Limited has made the disclosure in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also uploaded this information on its website at www.dcm.in and informed both BSE Limited and National Stock Exchange of India Limited about the development.

The matter now moves to arbitration proceedings, where the dispute between DCM Limited and GCD Prime will be resolved according to the terms specified in their original Joint Development Agreement. The company has stated that both the financial implications and quantum of claims cannot be determined at this stage of the proceedings.

DCM Limited has issued a postal ballot notice dated February 12, 2026, seeking shareholder approval for a material related party transaction involving the extension of repayment terms with Purearth Infrastructure Limited. The company requires member approval through e-voting for modifying existing financial arrangements with its joint venture partner.

Transaction Details and Financial Impact

The proposed transaction involves extending the repayment period of outstanding book debts by an additional 36 months. The financial parameters of this extension are substantial:

The extension would modify the repayment timeline from the current 66 months to 102 months, calculated from the original agreement execution dates of March 27, 2021 and April 17, 2021. This represents approximately 30% of the company's annual consolidated turnover based on the latest audited accounts.

Background and Rationale

DCM Limited originally purchased residential units in the "Amaryllis" project in Central Delhi from Purearth Infrastructure Limited under deferred payment arrangements. The book debts were secured by a charge on the company's 48.35-acre land near Mela Ground, Hisar, Haryana. Previous extensions were granted in September 2023 and December 2024 for 12 months and 18 months respectively.

The current extension request stems from continued delays in the Hisar land development project. The company faces challenges due to the non-revocation of suspension order of license no. 179 of 2022 dated April 18, 2023. Despite issuing notices of default and termination to the developer GCD Prime, the matter remains under arbitration proceedings before the Delhi High Court.

E-Voting Process and Timeline

The company has engaged National Securities Depository Limited (NSDL) to facilitate the e-voting process. Key dates for the postal ballot are:

Ms. Pragnya Parimita Pradhan, Company Secretary in Practice, has been appointed as the scrutinizer for the e-voting process. The postal ballot notice is being sent electronically to members whose email addresses are registered with the company's registrar MCS Share Transfer Agent Limited or depository participants.

Related Party Considerations

Purearth Infrastructure Limited is classified as a joint venture company promoted by DCM Limited. The company holds a 16.56% direct stake in Purearth, while directors Mr. Sumant Bharat Ram, Mr. Yuv Bharat Ram, and Mr. Rahil Bharat Ram collectively hold 48.79% shareholding in DCM Limited through themselves and relatives. Mr. Sumant Bharat Ram individually holds 5.46% shareholding in Purearth and serves on its board.

Under SEBI Listing Regulations, related parties are restricted from voting on this ordinary resolution. The Audit Committee and Board of Directors approved the proposal at their meeting held on February 12, 2026, subject to shareholder approval through the postal ballot process.