SC asks Karnataka HC to expeditiously decide ED-Embassy dispute, declines to interfere with interim order

NEW DELHI: The Supreme Court has asked the High Court of Karnataka to expeditiously decide pending petitions involving Embassy East Business Park Pvt Ltd, while declining to interfere with an interim order passed by the High Court at this stage.

A Bench of Justice Dipankar Datta and Justice Augustine George Masih passed the order while hearing a Special Leave Petition filed by the Enforcement Directorate (ED) against an interim order of the Karnataka High Court in proceedings involving Embassy East Business Park Pvt. Ltd. and others.

The Bench noted that the criminal petition and connected matters were already listed before the Karnataka High Court on June 5, 2026. Taking note of the impending hearing, the Court said it was not inclined to interfere with the impugned interim order at the present stage.

The Supreme Court accordingly disposed of the petition and requested the High Court to decide all pending petitions as early as possible and, subject to its convenience, by August 2026. The Court also clarified that all contentions on merits remain open for consideration before the High Court.

The proceedings arise from litigation concerning land allotted by the Karnataka Industrial Areas Development Board (KIADB) to Embassy East Business Park in Bengaluru. The matter has also drawn attention in view of disclosures relating to a proposed facility of US semiconductor equipment manufacturer Lam Research on a portion of the land.

According to publicly available disclosures, arrangements have been entered into in relation to a 25-acre parcel within the larger project area. During an earnings call earlier this year, Embassy Developments Ltd. stated that the arrangement with Lam Research is presently structured as a sub-lease and that no sale of land has taken place.

Corporate filings of Lam Research India and Embassy group entities refer to the sub-lease arrangement and also contemplate the possibility of a future transfer or execution of a sale deed, subject to fulfilment of contractual conditions, regulatory approvals and the outcome of ongoing legal proceedings.

Disclosures filed by Lam Research India further indicate that amounts have been recorded as capital advances in connection with land proposed to be used for development of its corporate office, engineering laboratory and future expansion plans in Bengaluru.

The Supreme Court’s order does not examine the merits of the underlying dispute or the nature of the commercial arrangements concerning the land. Instead, the Court has left all issues open for consideration by the Karnataka High Court, where the substantive proceedings remain pending.

Separately, disclosures filed by Lam Research India state that approximately ₹11,150 million (about ₹1,115 crore) has been recorded as capital advances relating to land proposed for development of the company’s corporate office, engineering laboratory and future expansion plans in Bengaluru. The disclosures form part of documents that have drawn attention to the structure of the 25-acre transaction.

Appearing for the Enforcement Directorate were Additional Solicitor General Suryaprakash V. Raju, along with advocates Zoheb Hussain, Annam Venkatesh and Sairica Raju, instructed by Advocate-on-Record Arvind Kumar Sharma. The respondents were represented by senior advocates Mukul Rohatgi and Nalin Kohli, along with Advocate-on-Record Eklavya Dwivedi and other counsel.

The Supreme Court’s order leaves the interim arrangement undisturbed for the present and places the matter back before the Karnataka High Court for consideration of the pending petitions in accordance with law. (ANI)