NEW DELHI: Embassy East Business Park (EEBP), a subsidiary of Embassy Developments, has received an order from the Karnataka Industrial Areas Development Board (KIADB) directing it to surrender possession of a 78-acre land parcel in Bengaluru within 30 days, the company said in a BSE filing.
The order, dated March 16, 2026 pertains to land located at Kadugodi Industrial Area, which EEBP holds under a lease-cum-sale agreement executed in June 2007 and valid until June 2029.
KIADB has invoked provisions under section 34B of the Karnataka Industrial Areas Development Act, 1966, alleging breach of agreement terms. The authority cited execution of memorandum of understanding, agreements and agreement-to-sell arrangements with third parties for portions of the land without prior approval.
EEBP has denied the allegations and said the sub-lease arrangements were undertaken after obtaining no-objection certificates from KIADB, in line with the terms of the lease agreement.
The company further stated that agreements to sell do not constitute transfer of ownership or possession and were executed subject to compliance with the original agreement. It added that such arrangements were intended to facilitate project development within stipulated timelines.
EEBP also contended that due process was not followed, claiming that prior submissions made to KIADB, including clarifications on approvals and the nature of agreements, were not considered in the order.
Embassy Developments said it is evaluating the implications of the directive and plans to pursue legal remedies, including approaching the Karnataka High Court.
