Further to the disclosures in the quarterly report on consolidated results for the financial period ended 30 September 2023 which was announced on 21 November 2023, the Board of Directors of SunCon wishes to announce that Sunway Construction Sdn Bhd (“SCSB”), a wholly-owned subsidiary of the Company had on 5 January 2024 entered into a Settlement Agreement (“Settlement Agreement”) with National Highways Authority of India (“NHAI”) (the duly executed and signed of which is received on 9 January 2024) whereby the parties have inter alia agreed that NHAI shall pay Rs 37,53,21,066 (Rupees Thirty Seven Crores Fifty Three Lakhs Twenty One Thousand and Sixty Six only) inclusive of taxes (“Settlement Amount”), to SCSB as full and final settlement of all the claims and disputes pertaining to a contract for the East West Corridor Project - Package EW-II (RJ-9) Rehabilitation and Upgrading of km 406.000 to km 449.150 of NH-76 To 4-Lane Configuration in the State of Rajasthan upon the terms and conditions set out in the Settlement Agreement.

The settlement is governed by the Vivad se Vishwas – II (Contractual Disputes) Scheme issued by the Department of Expenditure, Ministry of Finance, India vide the Office Memorandum. This scheme is implemented by the Government of India as a one-time settlement scheme to clear the old litigation cases.  

In accordance with the terms outlined in the Settlement Agreement and barring any unforeseen circumstances, the Settlement Amount is expected to be disbursed by NHAI to SCSB within one month from the date of the execution of the Settlement Agreement. As part of the Settlement Agreement, both NHAI and SCSB also mutually consent to withdraw any ongoing litigations, arbitral proceedings, or conciliation proceedings.

None of the directors or major shareholders of SunCon or person connected with them has any interest, whether direct or indirect, in the Settlement Agreement.

This announcement is dated 9 January 2024.