RailTel Corporation of India has disclosed a new arbitration proceeding initiated by 3i Infotech Limited related to the termination of a Wi-Fi monetisation project contract. According to reports from CNBC TV18, the matter has been filed before an Arbitration Tribunal, with 3i Infotech as the claimant and RailTel as the respondent. The claim amount filed by 3i Infotech stands at ₹60.26 crore, while RailTel's counterclaim amount is ₹91.34 crore. The disclosure was made to the National Stock Exchange of India Limited and BSE Limited on July 17, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and referenced the SEBI Master Circular regarding disclosure of material events.
The dispute relates to the termination of the contract, with RailTel stating it had terminated the contract lawfully and strictly in accordance with the terms and conditions of the tender. As reported by CNBC TV18, 3i Infotech invoked arbitration following the termination notice issued by RailTel. The Wi-Fi Monetisation Project was awarded to 3i Infotech following an open and competitive bidding process, according to RailTel's disclosure. The company confirmed that the matter is currently sub-judice and the final outcome is subject to the tribunal's decision.
In June this year, RailTel Corporation of India said it had received a Letter of Intent (LoI) from the Director IT for a domestic contract related to disaster recovery IT infrastructure. According to CNBC TV18, the estimated size of the order is ₹52.57 crore (including tax). The scope of work includes supply, installation, integration and commissioning of disaster recovery IT infrastructure at a MeitY empanelled CSP data centre, along with its operation and maintenance for five years. The execution timeline for the order is up to January 12, 2027, with RailTel receiving the Letter of Intent on June 16, 2026.
Shares of RailTel Corporation of India Ltd ended at ₹298.70, down by ₹2.75, or 0.91%, on the BSE. As reported by CNBC TV18, the company stated that the promoter or promoter group has no interest in the awarding entity, and the order does not fall under related party transactions. The financial implications, including any compensation or penalty, will depend on the final adjudication of the disputes and claims. The company confirmed that the matter is currently sub-judice and the final outcome is subject to the tribunal's decision.
