RailTel Corporation of India has secured an arbitration award in its dispute with Rajcomp Info Services Ltd (RISL). The Arbitral Tribunal directed RISL to pay a differential amount of ₹8 crore to RailTel, along with applicable interest and GST.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, on August 27, 2026. The filing updates the status of the pending litigation previously disclosed by the company in April 2025.

Arbitration Award Details

The Arbitral Tribunal passed the award after evaluating both the primary claim and the counter-claim. RailTel had claimed ₹94 crore from RISL. The Tribunal awarded approximately ₹13 crore in favour of RailTel out of this total claim amount.

Conversely, RISL had filed a counter-claim for ₹313 crore. The Tribunal awarded ₹5 crore in favour of RISL against this counter-claim.

The final differential payable by RISL to RailTel is calculated as the difference between the two awards (₹8 crore). This payment is subject to additional interest and Goods and Services Tax (GST).

What the Numbers Show

The arbitration outcome represents a partial recovery for RailTel. While the company secured an award, it constitutes only roughly 14% of its initial ₹94 crore claim. Similarly, RISL’s counter-claim award of ₹5 crore is minimal relative to its sought amount of ₹313 crore. The net financial impact remains modest at ₹8 crore, excluding the accretion from interest and GST.

Railtel Corporation of India has been levied a fine of ₹9,00,340 each by the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for regulatory non-compliance during the quarter ended June 30, 2026.

The penalties relate to violations of Regulation 17(1), 18(1), and 19(1)/(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The infractions specifically concern the composition of the Board of Directors.

Regulatory Action Details

The exchange communications were received on August 27, 2026. The NSE issued letter number NSE/LIST-SOP/COMB/FINES/0954 dated August 25, 2026. The BSE communicated the fine via email on the same date, referencing SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026.

Company Explanation

RailTel stated that the non-compliance was beyond its control due to its status as a Government Company under Section 2(45) of the Companies Act, 2013. Under the Articles of Association, the President of India holds the power to appoint Directors, including Independent Directors.

All directors are appointed by the Government of India through the Ministry of Railways (MoR). The company noted that it has no role in the appointment process but has repeatedly requested the MoR to appoint the requisite number of directors to ensure compliance.

Financial Impact

RailTel disclosed that the fines have no material impact on its financial or operational activities. The total penalty outflow stands at ₹18,00,680 inclusive of GST.