Bengaluru (Karnataka) [India], March 22 (ANI): Embassy Developments Ltd has informed stock exchanges that the Karnataka Industrial Areas Development Board (KIADB) has ordered the resumption of a land parcel measuring approximately 78 acres in Bengaluru, held by its subsidiary, Embassy East Business Park Ltd (EEBPL).

According to the disclosure, KIADB passed an order dated March 16, 2026, directing EEBPL to surrender possession of the land located in the Kadugodi Industrial Area within 30 days. The order was received by the subsidiary on March 17, 2026.

The land is held under a Lease-cum-Sale Agreement (LCSA) executed in June 2007, which is valid until June 2029. KIADB has initiated action under Section 34B of the Karnataka Industrial Areas Development Act, 1966, citing alleged breaches of the terms and conditions of the agreement.

As per the filing, the alleged violations relate primarily to execution of a memorandum of understanding, agreements, and agreement-to-sell arrangements with third parties in respect of portions of the land, without prior approval from KIADB.

EEBPL has denied and refuted the allegations. The company stated that sub-lease arrangements were undertaken after obtaining no-objection certificates from KIADB in compliance with the LCSA.

It further submitted that agreements to sell do not create or transfer any interest in property and were executed subject to necessary approvals, including execution of a sale deed by KIADB. The arrangements, it said, were intended to facilitate project implementation within stipulated timelines.

The subsidiary has also raised concerns regarding violation of principles of natural justice, stating that its prior communications and submissions were not considered in the order.

Embassy Developments said it is evaluating the order and its implications and intends to pursue appropriate legal remedies, including approaching the Karnataka High Court for relief. The company added that it is also assessing the financial and operational impact of the order.

The development gains significance as the company has recently been in the news for securing status quo relief against coercive steps in two separate ECIRs registered by the ED, underscoring the ongoing regulatory and enforcement overhang around the group. (ANI)