Velan Hotels Limited has submitted its quarterly compliance certificate to regulatory authorities, confirming adherence to SEBI dematerialization regulations for the quarter ended March 31, 2026.

Regulatory Compliance Certificate

The company filed its certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 on April 15, 2026. The certificate was addressed to both major depositories in India and confirms the company's compliance with dematerialization procedures during the reporting quarter.

Registrar Confirmation

MUFG Intime India Pvt. Ltd., formerly Link Intime India Private Limited, serves as the company's Registrar and Transfer Agent. The registrar provided confirmation on April 3, 2026, certifying that all dematerialization processes were completed within prescribed timelines.

The registrar confirmed that:

• Securities received for dematerialization were properly verified
• Physical certificates were mutilated and cancelled after due verification
• Depository names were substituted in the register of members as registered owners
• All procedures were completed within the 15-day regulatory timeline

Certification Details

Company Secretary and Compliance Officer Garima Maheshwari signed the compliance certificate on behalf of Velan Hotels Limited. The certificate confirms that dematerialized securities are listed on the same stock exchanges where the company's earlier issued securities are traded.

Corporate Information

Velan Hotels Limited operates from its registered office at 41, Kangetam Road, Tirupur - 641 604, Tamil Nadu. The company maintains its business operations at SF No: 36 & Door No.41 E & F, K.G.Pudur, Kangetam Road, Tirupur. This quarterly filing demonstrates the company's commitment to maintaining regulatory compliance and transparent corporate governance practices.

Velan Hotels Limited has announced the successful resolution of a long-standing legal dispute through an out-of-court settlement, marking the end of litigation that has been ongoing since 2019. The company informed BSE Limited on March 30, 2026, about the amicable settlement reached with Mohan Clothing Company Pvt Ltd.

Settlement Details and Financial Impact

The settlement involves a significantly reduced payment compared to the original claims. Under the agreement, Velan Hotels paid Rs.20 lakhs to resolve the dispute, substantially lower than the total claim amount.

Background of the Litigation

The dispute originated from an arbitration award issued by a sole arbitrator in favor of Mohan Clothing Company Pvt Ltd. The original claims included multiple components that formed the basis of the legal proceedings.

Original Claim Breakdown

The arbitrator's award encompassed several financial demands:

• Security deposit refund: Rs.9.82 lakh (interest-free)
• Fit-out and interior works: Rs.22.79 lakh with 9% interest
• Damages: Rs.0.50 lakh
• Proceedings cost: Rs.0.50 lakh

Regulatory Compliance and Disclosure History

Velan Hotels has maintained transparency regarding this litigation through regular disclosures to BSE Limited under Regulation 30 of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015. The company had previously updated the exchange on this matter on multiple occasions:

• October 15, 2019
• January 9, 2020
• September 25, 2023
• October 30, 2024

Resolution Benefits

The out-of-court settlement represents a mutually beneficial arrangement for both parties. By reaching this voluntary agreement, both Velan Hotels and Mohan Clothing Company have avoided the uncertainties and costs associated with prolonged litigation. The settlement allows the company to close this legal matter definitively while achieving a substantial reduction from the original claim amount.

The appeal case that Velan Hotels had filed in higher courts challenging the original arbitrator's award is now considered closed based on this agreed-upon voluntary arrangement. This resolution enables the company to focus on its core hospitality business operations without the ongoing legal uncertainties.