Radaan Mediaworks Cancels Property Deal with Mrs. R.Radikaa Sarathkumar Amid Construction Delays

Radaan Mediaworks India Limited , a Chennai-based media company, has officially cancelled a property deal with Mrs. R.Radikaa Sarathkumar, citing construction delays and economic challenges stemming from the COVID-19 pandemic. The cancellation, which was registered on August 11, pertains to the purchase and construction agreement for the third floor of a commercial property.

Background of the Deal

The original agreements, executed on September 26, 2018, involved the purchase of an immovable property and a construction agreement for its development. Mrs. R.Radikaa Sarathkumar, referred to as "The Builder" in the company's official communication, was the seller and developer of the property.

Reasons for Cancellation

Several factors contributed to the decision to cancel the deal:

1. Construction Delays: The COVID-19 pandemic and subsequent economic challenges led to significant delays in the completion of the building.
2. Leasing Issues: The builder faced unforeseen delays in finalizing commercial leasing deals for the first and second floors of the property, which directly impacted the project's completion.
3. Cash Flow Impact: The pandemic affected Radaan Mediaworks' business cash flow, making it difficult to proceed with the original agreement.

Corporate Governance Process

The decision to cancel the agreement followed a structured corporate governance process:

1. The audit committee and board of directors recommended the cancellation in their respective meetings held on February 14.
2. Shareholders approved the decision through a postal ballot on March 25.
3. The cancellation was executed as per the terms of the original agreement.

Official Registration

Radaan Mediaworks India Limited officially registered the cancellation of both the sale deed and the construction agreement on August 11, at the concerned Sub-Registrar Office.

Regulatory Compliance

The company has made this announcement in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and related SEBI circulars. The information was disclosed to the National Stock Exchange of India Limited and BSE Limited on August 12.

This development highlights the ongoing challenges faced by businesses in the real estate and media sectors due to the lingering effects of the COVID-19 pandemic and subsequent economic uncertainties. It also demonstrates Radaan Mediaworks' commitment to transparent communication with its shareholders and regulatory bodies in navigating these challenges.