High Court of Madras Issues Interim Directions on Funds for SEPC Limited
The Hon'ble High Court of Madras passed an order on April 30, 2026, issuing several interim directions regarding the financial management and dues related to SEPC Limited (formerly Shriram EPC Limited). The directions pertain to the ongoing resolution process and the utilization of funds within the Trust and Retention Account.The order addresses the ability of various parties, including the consortium of lenders and the operating company, to appropriate and utilize specific sums of money towards dues payable under the approved resolution plan.
Key Interim Directives Issued
The Court issued specific instructions to multiple parties concerning the flow and utilization of funds:| Party/Entity | Action | Amount/Timeline |
|---|---|---|
| Consortium of Banks | Permitted to appropriate funds from the Trust & Retention Account towards dues payable under the approved resolution plan. | Up to ₹15.69 crore |
| SEPC Limited (JD 2) | Permitted to utilize funds exclusively for payment of salaries. | Up to ₹2 crore |
| Twarit Consultancy Services Pvt. Limited (JD-1) | Directed to deposit funds with the Registrar General of the High Court within 15 days. | ₹2.5 crore |
| Twarit Consultancy Services Pvt. Limited (JD-1) | Directed to file an affidavit regarding the source of funds. | ₹7.5 crore per quarter |
The Court also specified that the matter is posted for further hearing on June 23, 2026.
Impact Assessment
Regarding the financial impact on SEPC Limited, the Court noted that the company would not face any direct quantifiable financial impact. This assessment was based on the fact that SEPC Limited already stands fully indemnified against any matters arising out of the Arbitral Award, citing an indemnification agreement dated September 29, 2015, with Twarit Consultancy Services Private Limited and Shri Housing Private Limited. The interim directions and appropriation are being handled under this said indemnification arrangement.SEPC Stock Price Movement
Shares of SEPC Limited are edging higher to ₹8.04 as of 11:50 AM today, gaining 0.63% in live trading. The stock maintains strong momentum in the market, having traded over 4.33 million shares so far.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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