NEW DELHI: The Supreme Court has urged the Karnataka High Court to quickly resolve ongoing petitions involving Embassy East Business Park Pvt Ltd, while choosing not to intervene in an interim order currently in effect from the High Court.
A Bench comprising Justice Dipankar Datta and Justice Augustine George Masih issued this directive while addressing a Special Leave Petition presented by the Enforcement Directorate (ED) in relation to an interim order concerning Embassy East Business Park Pvt. Ltd. and others.
The Bench remarked that the criminal petition and associated matters are already scheduled for hearing before the Karnataka High Court on June 5, 2026. Acknowledging this upcoming hearing, the Court expressed its disinclination to alter the existing interim order at this time.
The Supreme Court dismissed the petition, encouraging the High Court to resolve all outstanding petitions as promptly as possible, ideally by August 2026, depending on its schedule. The Court clarified that all arguments regarding the merits of the case remain available for discussion before the High Court.
The legal proceedings stem from a dispute regarding land allocated by the Karnataka Industrial Areas Development Board (KIADB) to Embassy East Business Park in Bengaluru. This issue has garnered attention due to revelations about a proposed facility by US semiconductor manufacturer Lam Research on part of the land.
Reports indicate that agreements have been made concerning a 25-acre section of the larger project area. In an earnings call earlier this year, Embassy Developments Ltd. noted that its arrangement with Lam Research is currently structured as a sub-lease, confirming that no land sale has occurred.
Corporate disclosures from Lam Research India and Embassy group entities reference this sub-lease agreement and consider potential future transactions or sale deeds, subject to contractual stipulations, regulatory approvals, and the outcome of ongoing legal cases.
Additional disclosures from Lam Research India reveal that approximately ₹11,150 million (around ₹1,115 crore) has been recorded as capital advances associated with land intended for the development of its corporate office, engineering lab, and future expansions in Bengaluru.
The Supreme Court’s order does not delve into the substantive merits of the underlying dispute or the commercial arrangements concerning the land. Instead, it preserves all issues for the Karnataka High Court, where the significant proceedings are yet to be resolved.
Additionally, as per disclosures from Lam Research India, the company has recorded around ₹11,150 million as capital advances concerning land earmarked for its corporate office, engineering lab, and expansion plans in Bengaluru. These disclosures have highlighted the framework of the 25-acre deal.
The Enforcement Directorate was represented by Additional Solicitor General Suryaprakash V. Raju, joined by advocates Zoheb Hussain, Annam Venkatesh, and Sairica Raju, instructed by Advocate-on-Record Arvind Kumar Sharma. The respondents’ defense was led by senior advocates Mukul Rohatgi and Nalin Kohli, along with Advocate-on-Record Eklavya Dwivedi and their respective legal teams.
The Supreme Court’s decision maintains the current interim arrangement and returns the matter to the Karnataka High Court for lawful consideration of pending petitions.
