Embassy developments Limited has notified stock exchanges regarding the further adjournment of its National Company Law Appellate Tribunal (NCLAT) proceedings from March 19, 2026, to April 10, 2026. The company filed this update under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, continuing its commitment to transparent stakeholder communication.

NCLAT Hearing Progress and Latest Adjournment

During the March 19, 2026 hearing before the NCLAT Principal Bench in New Delhi, the learned counsel representing the respondents requested an adjournment. The Hon'ble Tribunal granted this request but made a significant observation that no further adjournment shall be sought by the respondents. The matter has been rescheduled for April 10, 2026, for submissions on behalf of the respondents and further proceedings.

Current Legal Status and Operations

The company confirmed that the NCLAT's stay on the National Company Law Tribunal (NCLT) order remains in effect. This stay continues to render the NCLT's Corporate Insolvency Resolution Process (CIRP) admission order inoperative, with all related proceedings remaining suspended.

Embassy Developments emphasized that despite the ongoing legal proceedings, the company maintains full operational capacity and financial stability. The stay order ensures business continuity while the appellate process continues.

Regulatory Compliance and Corporate Structure

The notification was simultaneously sent to both BSE Limited (Scrip Code: 532832) and the National Stock Exchange of India Limited (Symbol: EMBDL), fulfilling the company's regulatory obligations under SEBI disclosure requirements.

Embassy Developments continues to monitor the proceedings closely and maintains its commitment to providing timely updates to all stakeholders as developments occur in this appellate matter.

Embassy Developments Limited has informed stock exchanges about a significant regulatory challenge facing its subsidiary, as the Karnataka Industrial Areas Development Board (KIADB) has ordered the resumption of approximately 78 acres of industrial land in Bengaluru. The order, dated March 16, 2026, and received on March 17, 2026, directs Embassy East Business Park Limited (EEBP) to surrender possession of the land within 30 days.

Land Holdings and Lease Details

The affected property is situated at Kadugodi Industrial Area, Bengaluru Urban District, where EEBP holds leasehold rights through a Lease Cum Sale Agreement (LCSA) executed with KIADB on June 7, 2007. The lease agreement remains valid until June 6, 2029.

KIADB's Allegations and Order

KIADB has passed the order under Section 34B of the Karnataka Industrial Areas Development Act, 1966, citing alleged breaches of the LCSA terms. The primary allegations center on EEBP's execution of memorandum of understanding, agreements, and agreement-to-sell arrangements with third-party sub-lessees and potential buyers for certain portions of the land without obtaining prior KIADB approval.

Company's Defense Strategy

EEBP has categorically denied the allegations and, based on legal counsel advice, believes the order can be successfully challenged on multiple grounds:

Key Defense Arguments

Sub-lease Compliance: EEBP maintains that sub-lease arrangements with third-party sub-lessees were undertaken after obtaining a no-objection letter from KIADB, ensuring compliance with LCSA terms.

Legal Distinction of Agreements: The company argues that agreement-to-sell arrangements do not create or transfer property interests by themselves. These agreements were executed without transferring possession or alienation and were expressly subject to LCSA compliance. The arrangements were structured as conditional conveyances contingent upon KIADB executing a sale deed in favor of EEBP.

Natural Justice Violations: EEBP had sent prior written communications to KIADB documenting KIADB's consent, legal distinctions between agreements-to-sell and concluded sales, and other relevant material facts. The order allegedly makes no reference to these communications and fails to address the arguments presented.

Legal Remedies and Next Steps

The company, along with EEBP, is evaluating the order's implications and intends to pursue appropriate legal remedies, including approaching the High Court of Karnataka for suitable relief. The disclosure emphasizes that the execution of transaction documents was solely for collaborative arrangements to accelerate project implementation within stipulated timelines.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, with comprehensive details provided in the prescribed format under the SEBI Master Circular dated January 30, 2026. Company Secretary Vikas Khandelwal has certified the information as true, correct, and complete to the best of his knowledge and belief.