Embassy Developments Limited announced that the Hon'ble High Court of Karnataka has set aside the Karnataka Industrial Areas Development Board's (KIADB) earlier order directing the resumption of approximately 78 acres of land at Kadugodi Industrial Area, Bengaluru. The land is held by Embassy East Business Park Limited (EEBPL), a wholly owned subsidiary of the Company. The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Background of the Dispute

The legal proceedings stem from a KIADB order dated March 16, 2026, which had directed the resumption of the land held by EEBPL at Kadugodi Industrial Area. In response to the KIADB order, EEBPL filed a writ petition before the Karnataka High Court challenging the directive. The Karnataka High Court allowed the writ petition on May 12, 2026, setting aside the KIADB order and rendering it ineffective.

High Court Ruling and Implications

As a direct consequence of the ruling, EEBPL continues to hold and retain possession of the said land. The key details of the development are summarised below:

The Kadugodi land remains strategically important to the Company's long-term development plans in the East Bengaluru development corridor and micro-market. The order enables EEBPL to continue progressing the development of its business park. This judgement represents another significant favourable legal outcome for the Company within a period of two weeks, following the order dated May 4, 2026, by the Hon'ble National Company Law Appellate Tribunal (NCLAT) quashing insolvency proceedings against Embassy Developments.

Management Commentary

Commenting on the development, Aditya Virwani, Managing Director, Embassy Developments Limited, said, "The Karnataka High Court's order is an important affirmation of EEBPL's lawful rights over land that has long been central to our East Bengaluru development plans. This is an important victory for the Company and we are pleased that, with this order, we can continue to develop the land. During this challenging time, we remained steadfast in our commitment to transparency, governance and compliance."

Disclosure and Governance

Embassy Developments noted that the formal signed copy of the court order is still awaited, and the disclosure has been made based on the pronouncement by the Hon'ble Court. The Company stated that this is in line with its commitment to high standards of governance and timely disclosure practices. According to the Company's regulatory filing, no penalties, restrictions, or sanctions were imposed pursuant to the proceedings, and no aberrations or non-compliances were identified by the authority in the communication.

Source: None/Company/INE069I01010/040a304eb56440a0.pdf

Embassy Developments Limited (formerly known as Equinox India Developments Limited and earlier Indiabulls Real Estate Limited) secured a significant legal relief on May 4, 2026, when the Hon'ble National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, pronounced its order in favour of the company. The NCLAT allowed the company's appeal, effectively setting aside the earlier National Company Law Tribunal (NCLT) order and bringing the insolvency proceedings against it to a close. The development was disclosed pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in continuation of the company's earlier intimation dated April 25, 2026.

NCLAT Order: Key Outcomes

The ruling delivered on May 4, 2026, carries several consequential outcomes for Embassy Developments. The key outcomes of the NCLAT order are summarised below:

Background: CIRP Admission by NCLT

The NCLT, New Delhi Bench, had, vide its order dated December 9, 2025, admitted the Corporate Insolvency Resolution Process (CIRP) against Embassy Developments under the Insolvency and Bankruptcy Code, 2016 (IBC). The company had challenged this admission before the NCLAT, which had also granted interim protection to the company during the pendency of the appeal. With the final order now pronounced, the interim protection granted earlier by the NCLAT stands subsumed into the final order, and all directions arising from the NCLT order stand terminated and disposed of.

Company Status and Operational Performance

Following the NCLAT's ruling, Embassy Developments is no longer subject to CIRP and stands fully relieved from all insolvency proceedings. The company reiterates that it remains financially sound and continues to operate in the normal course, with no impact on its business operations, projects, or stakeholders. This is further reflected in the company's strong operational performance in FY26, during which Embassy Developments recorded pre-sales of approximately ₹4,600 crore, including its highest-ever quarterly bookings in Q4, underscoring sustained demand and execution momentum. The formal written order passed by the NCLAT is awaited and will be filed upon receipt.

Chairman's Statement

Commenting on the development, Jitu Virwani, Chairman, Embassy Developments Limited, said, "We welcome the Hon'ble NCLAT's order, which upholds our position. This was a legacy issue whereby a letter by Indiabulls Real Estate to fund any shortfall in equity for a past affiliate has been misconstrued and misrepresented as a corporate guarantee. We pursued the appeal with full confidence in the strength of our case. We are aware of the pain this issue has caused our shareholders and welcome the relief this brings to the shares of the Company. Our business and operating performance has performed strongly throughout this period, reflecting the resilience of our platform and the strength of our underlying fundamentals."

About Embassy Developments Limited

Embassy Developments Limited (EDL) is one of India's largest listed real estate developers, specialising in the development of residential and commercial projects across key urban markets. With a strategic focus on Bengaluru, the Mumbai Metropolitan Region (MMR), and the National Capital Region (NCR), the company also has a presence in Chennai and Indore. EDL has a diversified residential portfolio with a well-balanced mix of high-value and high-volume developments across mid-income, premium, and luxury segments. Its portfolio of ready, ongoing, and future residential projects includes branded residences, uber-luxury apartments and villas, exclusive town homes, condominiums, integrated townships, senior living communities, and contemporary homes. EDL holds a long-term debt rating of IVR A- (Stable) from Infomerics and benefits from the strong institutional foundation of its promoter, the Embassy Group, which brings over three decades of experience and a proven track record of delivering and managing more than 100 million sq. ft. across commercial, residential, hospitality, services, and education sectors in India.

Source: None/Company/INE069I01010/2ce38b9c-5b12-42b1-b558-c67eaac5425c.pdf