Patel Engineering Ltd (PEL) has reached a settlement agreement with Continental Casualty Company and Western Surety Company, resolving a longstanding legal dispute in the United States. The company will pay approximately $5 million (₹44 crore) to settle claims that originally amounted to around $40 million.

Settlement Details

The settlement, disclosed in a regulatory filing, brings closure to a lawsuit filed in 2019 by the US-based insurance companies. The dispute originated from sureties issued for ASI Constructors Inc., a former US subsidiary of Patel Engineering.

Background of the Dispute

The lawsuit stemmed from payment and other sureties issued by the plaintiffs to vendors, contractors, and clients of ASI Constructors Inc. After ASI's closure in 2017, the insurance companies incurred various costs related to these sureties.

Financial Implications

PEL has stated that it will make provisions for the settlement amount in its financial statement for the quarter ending September 30, 2025. The company plans to make payments in various tranches from internal accruals, asserting that this will not materially affect its liquidity or impact business operations.

Company's Perspective

Patel Engineering maintained that it was unlikely to face an adverse order for the full amount claimed by the plaintiffs, as neither PEL nor Patel Engineering Inc. were parties to the original indemnity agreement. However, the company opted for settlement to avoid high litigation costs in the US and to save on future administrative expenses.

This settlement marks a significant resolution for Patel Engineering, allowing the company to put this legal challenge behind it and focus on its core operations. The substantial reduction in the settlement amount compared to the original claim suggests a favorable outcome for the company, potentially minimizing the impact on its financial health.

Patel Engineering Ltd, a prominent player in the infrastructure sector, has announced a significant addition to its leadership team. The company's Board of Directors has appointed Mr. R V R Kishore as an Additional and Whole-Time Director for a three-year term, commencing September 22, 2025, subject to shareholder approval.

Board Approval and Appointment Details

The appointment, approved in a board meeting held on September 12, 2025, follows the recommendation of the company's Nomination and Remuneration Committee. Mr. Kishore's term is set to run from September 22, 2025, to September 21, 2028, bringing his extensive experience to Patel Engineering's executive team.

R V R Kishore: A Seasoned Infrastructure Professional

Mr. Kishore brings over 35 years of rich experience in the infrastructure sector to his new role at Patel Engineering. His expertise spans various critical areas including:

• Urban infrastructure
• Transport
• Tunneling
• Marine projects
• Power sector
• EPC (Engineering, Procurement, and Construction)
• BOT (Build-Operate-Transfer) projects
• PPP (Public-Private Partnership) initiatives

Throughout his career, Mr. Kishore has held CXO-level positions in peer companies within the infrastructure industry. His track record includes successfully managing portfolios exceeding ₹40,000.00 crore, demonstrating his capability to handle large-scale projects and drive both top-line and bottom-line growth.

Educational Background

Mr. Kishore's educational qualifications complement his extensive practical experience:

• Bachelor of Engineering in Construction from Shivaji University (1989), graduating with First Class Honors
• Diploma Masters in Construction Management from NICMAR, Mumbai

Leadership and Strategic Expertise

Known for his strategic acumen, Mr. Kishore has been recognized for his leadership in various aspects of the infrastructure business, including:

• Strategic growth planning
• Efficient project delivery
• Effective stakeholder engagement
• Robust business development

He has a strong reputation for building and leading high-performance teams and driving sustainable growth in the organizations he has been associated with.

Compliance and Governance

In line with regulatory requirements, Patel Engineering has confirmed that Mr. Kishore is not related to any existing directors of the company. Furthermore, he is not debarred from holding directorial positions by any regulatory authority, including SEBI.

The appointment of Mr. R V R Kishore as Whole-Time Director signals Patel Engineering's commitment to strengthening its leadership team with experienced professionals. As the company continues to navigate the complex landscape of infrastructure development, Mr. Kishore's extensive experience and strategic insights are expected to contribute significantly to its future growth and project execution capabilities.