Order Cancellation

Vishnu Prakash R Punglia Receives Contract Termination Notice from North Western Railway

NSE

vprpl

BSE

543974

Vishnu Prakash R Punglia Limited (VPRPL) received a termination notice from North Western Railway regarding the EPC contract for redevelopment and major upgradation of Bikaner Railway Station. The company has initiated legal action before the Rajasthan High Court challenging the rescinding order.

PRICE-SENSITIVE TRIGGER

Event: Contract Termination Notice

Type: Order Cancellation

Impact: Negative

Immediate Effect: The termination of the railway station redevelopment contract may lead to financial implications, bank guarantee encashment risks, and loss of future project revenues for the company.

Key Metrics:

Expected Financial Implication: INR 199.472 million
Performance Bank Guarantee Exposure: INR 191.215 million
Security Deposit Exposure: INR 8.257 million
Date of Communication Received: 11-05-2026
Project Type: EPC Redevelopment Contract for Bikaner Railway Station

Highlight:

Label: Contract Termination Impact
Value: Potential financial implication of INR 199.472 million

What Happened ?

Vishnu Prakash R Punglia Limited informed stock exchanges that it has received a termination notice from North Western Railway related to the EPC contract for major upgradation and redevelopment of Bikaner Railway Station.

The contract had been awarded to the VPRPL-KSIPL BKN Joint Venture, in which VPRPL was a partner. As per the communication received, the contract stands rescinded and the remaining work will now be executed independently without VPRPL’s participation.

The company stated that it has already initiated legal proceedings by filing a writ petition and stay application before the Rajasthan High Court, Jodhpur.

key highlights

Contract Termination & Legal Action:

VPRPL received a termination notice from North Western Railway.
The notice relates to redevelopment and major upgradation works at Bikaner Railway Station.
The project was awarded to VPRPL-KSIPL BKN Joint Venture.
The contract has been rescinded as per the railway authority’s communication.
Remaining work under the project will continue without VPRPL’s participation.
The company faces possible encashment of bank guarantees and forfeiture of security deposits.
VPRPL has approached the Rajasthan High Court, Jodhpur through a writ petition and stay application.
The company is seeking quashing of the rescinding order and restraint on encashment of the bank guarantee.

Note:

The project termination introduces legal and financial uncertainty until judicial proceedings are resolved.

Risk Analysis

Key Risks

Potential financial exposure of nearly INR 199.472 million.
Risk of bank guarantee encashment by the railway authority.
Loss of future revenue and execution opportunity from the project.
Ongoing legal proceedings may increase uncertainty and costs.
Adverse legal outcome could impact investor sentiment and order book visibility.

Worst Case Scenario

If the court does not grant relief, the company may face full financial liability including forfeiture of guarantees and deposits along with project cancellation losses.

Risk Level: High

Company Commentary

The company confirmed receipt of the termination notice from North Western Railway.
Management stated that the remaining project work will continue without VPRPL participation.
VPRPL has initiated legal remedies before the Rajasthan High Court.
The company is seeking protection against bank guarantee encashment and rescinding of the contract termination order.

Official Exchange Filing: Vishnu Prakash R Punglia Limited