Tera Software has achieved a favorable resolution in its legal challenge against a significant GST demand order. The company's writ petition against a GST demand worth ₹120.47 crores has been disposed of without costs by the Hon'ble High Court of Andhra Pradesh, providing relief from potential financial liability.

Legal Proceedings and Court Decision

The High Court of Andhra Pradesh disposed of Writ Petition No. WP/0006870/2026 filed against GST Demand Order (DRC-07). The company discovered the disposal status on the High Court's website, though the certified copy of the formal order is yet to be received.

GST Demand Order Details

The original GST demand order was issued by the Assistant Commissioner, Tenali, Commercial Taxes Department, Government of Andhra Pradesh. The demand amount of ₹120.47 crores includes tax, interest, and penalty under applicable GST provisions.

Alleged Violations and Company Response

The GST authorities alleged discrepancies relating to excess claim of Input Tax Credit (ITC) and under-declaration of output tax in GSTR-3B compared to GSTR-1 for the period from July 2017 to August 2019. Tera Software challenged these allegations through the writ petition, which has now been disposed of favorably.

Financial and Operational Impact

According to the company's disclosure under Regulation 30 of SEBI regulations, there is no material impact on the financial or operational activities of Tera Software. The disposal of the writ petition without costs eliminates the potential financial burden and provides clarity on the company's tax position.

This resolution demonstrates the company's effective legal strategy in handling regulatory challenges while protecting shareholder interests and maintaining operational stability.

Tera Software Limited has initiated a postal ballot process to seek shareholder approval for the appointment of Mr. Veera Brahma Rao Arekapudi as an Independent Director. The company's Board of Directors approved the postal ballot conduct at their meeting held on February 10, 2026, in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

E-Voting Schedule and Process

The remote e-voting process will be conducted exclusively through electronic mode, with KFin Technologies Limited serving as the e-voting service provider. The company has established a comprehensive timeline for the voting process:

Shareholders whose names appear on the Register of Members or Register of Beneficial Owners as of the cut-off date will be eligible to participate in the voting process. The company will send the postal ballot notice only through electronic mode to members with registered email addresses.

Proposed Director Appointment

The postal ballot seeks approval for appointing Mr. Veera Brahma Rao Arekapudi (DIN: 07540040) as an Independent Director for a term of five consecutive years, commencing from February 10, 2026 to February 9, 2031. Mr. Arekapudi was initially appointed as an Additional Independent Director by the Board on February 10, 2026, based on the Nomination and Remuneration Committee's recommendation.

Director's Professional Background

Mr. Arekapudi brings extensive experience in banking and financial services to the Board:

His professional credentials include postgraduate diplomas in Securities Law and Alternate Dispute Resolution, registration as an Insolvency Professional with IBBI, and advanced leadership training from institutions including IIM Kolkata and Wharton Business School. During his SBI tenure, he also served as CEO of Trust Exchange Company, Doha, Qatar for four years.

Regulatory Compliance and Documentation

The company has received all necessary documentation from Mr. Arekapudi, including consent to act as Director in Form DIR-2, declaration of non-disqualification under Section 164 of the Companies Act, 2013, declaration of independence, and confirmation of registration in the Independent Directors' Databank. The appointment requires shareholder approval through a Special Resolution as mandated by the Companies Act, 2013 and SEBI LODR Regulations.

Voting Access and Results

Shareholders holding shares in both demat and physical form can participate through the e-voting platform. The postal ballot notice is available on the company's website at www.terasoftwre.com , stock exchange websites, and KFin Technologies' portal. Results will be displayed at the company's registered office in Hyderabad, published on the company website, and communicated to stock exchanges where the company's equity shares are listed.