Patel Engineering Ltd disclosed that its joint venture, RAMAN PATEL J.V., has been blacklisted by the Public Procurement Monitoring Office, Government of Nepal. The blacklisting order, published on May 27, 2026, is effective immediately and will remain in force until May 26, 2029. The joint venture includes the company and Raman Construction Private Limited.

The regulatory action follows the termination of a contract for the Sunkoshi Marin Diversion Multipurpose Project, Lot-1, awarded by the Ministry of Energy, Department of Water Resources and Irrigation, Government of Nepal. Patel Engineering holds a 35% stake in the joint venture, while Raman Construction Private Limited is the lead partner holding 65%.

Disputes arose between the joint venture and the employer regarding their respective obligations, leading to the contract termination and subsequent blacklisting. The company noted that the issues regarding all disputes are currently pending adjudication and remain sub-judice.

Patel Engineering stated that all project execution activities were the domain and responsibility of Raman Construction Private Limited, the lead partner. Consequently, the company reported that there is no material impact on its financials or operations resulting from this action.

Patel Engineering Ltd has been penalized Rs 14 lacs by the Forest and Environment department, Namthang, South Sikkim, for operating a stone crusher plant without a mandatory operational license. The penalty covers the periods 2022-23, 2023-24, and 25-26 during which the 200 THP capacity plant at Thalthaley Pamphok, Sikkim, was operative. The company stated there is no material financial impact and that operations at the site continue as usual.

The order, received on May 25, 2026, relates to the stone crusher plant used for the Teesta Stage-VI Hydro Electric Project. This 500 MW project, comprising four units of 125 MW each, was awarded by NHPC in 2021 with a contract value of INR 1,251 Crore. Patel Engineering disclosed that while it had obtained all required licenses, including Consent to Operate from the Forest and Environment department, it was not informed about the requirement for a specific Mandatory Operational License.

The company management asserted that the department did not intimate or mention the need for this specific license during the issuance of the Consent to Operate. Consequently, the company remained unaware of the necessity to obtain this separate license until the penalty was levied. The department's letter dated May 25, 2026, imposed the flat penalty for the specified years.

In response to the regulatory action, Patel Engineering confirmed it will comply with the order. The company intends to pay the required penalty of Rs 14 lacs along with the necessary license fees. It further stated that it will follow all instructions provided by the Forest and Environment department to regularize the status of the stone crusher plant.

The disclosure was made to the exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing emphasized that despite the regulatory action, the financial and operational impact remains immaterial, and the execution of the hydro electric project proceeds without disruption.