Diligent Media Corporation Limited has informed the Exchange regarding Update on Pending Litigation
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Diligent Media Corporation received an arbitration award dated August 20, 2025, from retired Bombay High Court Justice GS Patel, resolving a long-running dispute with Veena Investments Private Limited (VIPL). The award, passed on mutual consent terms, directs the company to cancel Non-Convertible Redeemable Preference Shares (NCRPS) originally worth Rs. 436.27 crore at a reduced value of Rs. 173.40 crore. VIPL's outstanding Inter-Corporate Deposit (ICD) amount will be entirely set off against this NCRPS value, with no actual cash payment required from either side. Upon cancellation, all mutual claims under the ICD agreements stand extinguished and neither party retains further claims against the other. The company highlights that its redemption liability drops from over Rs. 436 crore to about Rs. 173 crore, and the arrangement has no adverse impact on its financial position.
This settlement removes a major litigation overhang and meaningfully reduces the company's financial liability without any cash outflow, which is a positive development for shareholders and the company's balance sheet. Investors may view the resolution favorably as it brings clarity and avoids prolonged legal uncertainty.