Pace Digitek Limited Faces Penalties for CSR Non-Compliance

Pace Digitek Limited , a Bangalore-based company, has received a penalty order from the Registrar of Companies (RoC) for non-compliance with Corporate Social Responsibility (CSR) obligations. The order, dated October 17, 2025, addresses violations under Section 135(7) of the Companies Act, 2013, relating to the company's failure to meet mandatory CSR spending requirements.

Details of the Violation

Pace Digitek voluntarily filed for adjudication prior to its listing, disclosing its failure to fulfill CSR obligations within prescribed timelines for the financial years 2020-21, 2021-22, and 2023-24. Additionally, the company failed to transfer unspent amounts to Schedule-VII funds as required by law.

Penalties Imposed

The RoC has levied penalties on both Pace Digitek and one of its officers. The breakdown of penalties is as follows:

Financial Year	Penalty on Company (INR)	Penalty on Venugopal Rao Maddisetty (INR)
2020-21	14,79,394	73,970
2021-22	17,91,196	89,560
2022-23	0	0
2023-24	20,56,000	1,02,800
Total	53,26,590	2,66,330

It's worth noting that for the financial year 2022-23, the company had no violation as it spent in excess of its CSR obligation, which was adjusted against the next year's obligation.

Company's Response

In its disclosure to the stock exchanges, Pace Digitek stated that there is no impact on its financial or operational activities due to this order. The company had proactively filed a suo-motu application on January 8, 2025, regarding the non-compliance, demonstrating a willingness to address the issue.

Upcoming Board Meeting

In a separate announcement, Pace Digitek has scheduled a board meeting for October 25, 2025, to consider and approve the unaudited financial results for the quarter ended June 30, 2025. The company has also closed its trading window from October 6, 2025, in compliance with SEBI regulations on insider trading.

This incident highlights the importance of corporate governance and adherence to CSR regulations for listed companies in India. It also underscores the regulatory bodies' commitment to enforcing compliance with the Companies Act, 2013.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.41%	+7.93%	+4.56%	+4.56%	+4.56%	+4.56%

Pace Digitek Limited , a prominent player in the telecom infrastructure solutions sector, has announced a significant milestone in its business operations. The company has secured a substantial Operation and Maintenance (O&M) contract from Tata Teleservices, marking a notable development in the telecom services industry.

Contract Details

Aspect	Details
Contract Value	₹185.87 crore
Duration	3.5 years (with possibility of extension)
Start Date	October 2025
Scope	OSP fiber network maintenance and ISP services
Coverage	Five states: Andhra Pradesh, Telangana, Karnataka, Kerala, and Tamil Nadu

Scope of Work

The contract entrusts Pace Digitek with comprehensive O&M responsibilities, including:

Outside Plant (OSP) Fiber Network Field Operations
Inside Plant (ISP) Operations

This agreement spans across five key states in South India, positioning Pace Digitek as a crucial partner in Tata Teleservices' network maintenance strategy.

Company Perspective

Rajiv Maddisetty, Whole-time Director of Pace Digitek Limited, expressed the company's sentiment regarding this new venture:

"We are immensely proud and honored that Tata Teleservices has entrusted us with this critical Operation and Maintenance contract. This is a testament to the trust we have built and the value we deliver in the telecom infrastructure space."

Company Background

Pace Digitek Limited, formerly known as Pace Digitek Private Limited and Pace Digitek Infra Private Limited, has been operating in the telecom infrastructure sector since 2003. The company specializes in:

Telecom tower infrastructure
Optical fiber cable networks
Power Management
Energy Management Solutions
Telecom Power Solutions
Solar Solutions

Recently, Pace Digitek commissioned a battery energy storage plant in Bangalore, further diversifying its portfolio of turnkey projects.

Market Implications

This contract represents a significant business opportunity for Pace Digitek, potentially strengthening its position in the telecom infrastructure market. The long-term nature of the contract, coupled with the possibility of extension, suggests a stable revenue stream for the company in the coming years.

For Tata Teleservices, this partnership could lead to improved network maintenance and operational efficiency across the five states covered by the contract.

As the telecom sector continues to evolve with the advent of new technologies, such partnerships between infrastructure providers and telecom operators are likely to play a crucial role in ensuring robust and efficient network operations.