RailTel Corporation of India has disclosed receiving a GST penalty notice of ₹49.24 lakhs from tax authorities, as per its regulatory filing dated January 15, 2026. The company made this disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Penalty Details

The telecommunications company received the demand notice from the Assistant Commissioner, CGST & CX, Itanagar Division. The following table summarizes the key details of the penalty:

Company's Response and Impact Assessment

RailTel has assessed the financial and operational impact of this penalty notice. The company stated in its disclosure that there is no material impact on its financial, operational, or other activities due to the mentioned order.

The company emphasized that these orders are challengeable and indicated that necessary appeals have been filed or are being filed with the appropriate jurisdictional appellate authorities. This suggests RailTel intends to contest the penalty through proper legal channels.

Regulatory Compliance

The disclosure was made pursuant to SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The filing was signed by J.S. Marwah, Company Secretary and Compliance Officer, with membership number FCS 8075.

RailTel, a government enterprise under the Ministry of Railways, maintains its registered and corporate office at Plate-A, 6th Floor, Office Block, Tower-2, East Kidwai Nagar, New Delhi. The company continues to operate its telecommunications services while addressing this regulatory matter through appropriate legal procedures.

RailTel Corporation of India Ltd has secured a contract worth ₹89 crores from Central Railway for network infrastructure development, while simultaneously announcing the cancellation of multiple work orders valued at approximately ₹609.56 crores. The company received the Letter of Acceptance (LoA) on January 14 for the new project, marking both positive developments and setbacks in its project portfolio.

New Central Railway Project

The latest contract involves the supply, installation, testing and commissioning (SITC) of IP-MPLS network equipment across multiple railway divisions. The comprehensive project covers various stations in Mumbai, Pune, Solapur, Bhusawal and Nagpur divisions of Central Railway, designed to establish unified communication infrastructure on Indian Railways.

Major Order Cancellations

RailTel Corporation informed the exchanges about the cancellation of multiple work orders with a combined value of approximately ₹609.56 crores. The most significant cancellation involves the Bihar Education Project Council contract for procurement, supply and installation of smart classrooms in government middle schools across Bihar, originally valued at ₹262.14 crores. The customer cancelled this work order due to unavoidable reasons.

Technical Infrastructure Scope

The new Central Railway project focuses on implementing IP-MPLS (Internet Protocol - Multiprotocol Label Switching) network technology across the designated railway divisions. This advanced networking solution will enhance communication capabilities and operational efficiency across the Central Railway network. The infrastructure development spans five major divisions, representing a comprehensive modernization initiative scheduled for completion by January 13, 2027.

Market Performance and Contract Terms

Shares of RailTel Corporation ended at ₹352.50, declining by ₹12.35 or 3.63% on the BSE on January 14. The company confirmed that the new Central Railway contract represents a purely domestic engagement with no international components or related party transactions involved. Neither promoter groups nor group companies have any interest in the awarding entity.

The mixed developments highlight RailTel Corporation's ongoing project dynamics, with new infrastructure opportunities balanced against significant order cancellations. The company continues to maintain its position as a key technology infrastructure provider for Indian Railways despite the recent project setbacks.