Embassy Office Parks REIT has dismissed claims from Sterling Wilson Renewable Energy and Sterling Wilson Pvt Ltd regarding a supposed Rs 100-crore payment owed by Embassy Energy Pvt Ltd (EEPL), a subsidiary of the REIT.
In a regulatory filing on Tuesday, the REIT described the allegations as “frivolous, false and vexatious,” noting that several judicial forums have already ruled against them.
Embassy REIT stated that the dispute originates from 2018, prior to its public offering and before EEPL became part of the trust.
Sterling Wilson alleges that EEPL has not fulfilled its payment obligations. However, both the National Company Law Tribunal (NCLT) Bengaluru Bench and the National Company Law Appellate Tribunal (NCLAT) Chennai Bench have determined that no contractual relationship exists between the parties, according to the REIT.
In 2017, EEPL contracted IL&FS Solar Power Ltd (ISPL) to develop a 100 MW solar project in Bellary, Karnataka. ISPL subcontracted the tasks to IL&FS Energy Development Company, which then worked with Sterling Wilson. Embassy REIT underscored that EEPL met all its contractual responsibilities by paying Rs 777.94 crore to ISPL between 2019 and 2020, after which ISPL issued a no-dues certificate, terminating all contracts.
Despite this, Sterling Wilson has initiated multiple legal actions, including a summary suit in Bengaluru demanding Rs 188.89 crore, along with criminal complaints against key executives and regulatory complaints to SEBI.
Embassy REIT reiterated that it has consistently disclosed the details of this dispute in its IPO documents, as well as in annual and half-yearly reports and fundraising materials. The REIT vowed to continue challenging what it considers “baseless attempts” by Sterling Wilson to exert pressure while protecting the interests of its unitholders.
