Embassy Developments Clarifies Absence of IBC Proceedings; Reaffirms Financial Strength

New Delhi, December 17, 2025: Embassy Developments Limited has issued a clarification for the benefit of investors and stakeholders, confirming that the company is not subject to any proceedings under the Insolvency and Bankruptcy Code, 2016 (“IBC”) and remains fully solvent and operational.

With reference to the company’s disclosure dated December 11, 2025, regarding the admission of a petition filed by Canara Bank before the NCLT, Delhi Bench, EDL clarifies that on the same day, the National Company Law Appellate Tribunal (NCLAT), Delhi Bench, granted a complete and unconditional stay on the operation of the NCLT order, thereby staying all proceedings under the IBC. The company promptly informed the Stock Exchanges and submitted a copy of the NCLAT order.

The company management reiterates and states that EDL has no debt obligation and has not issued any corporate guarantee as alleged before the NCLT. The matter pertains to Sinnar Thermal Power Limited, which was the borrower in question and is not a related party of EDL or the Embassy Group today. Sinnar’s resolution has been fully completed pursuant to an order of the NCLT dated November 28, 2025, with the consent of 100 per cent of its creditors, including Canara Bank who has received approximately INR 63 crore, representing its proportionate share of approximately 1.7 per cent. The asset has since been taken over by a joint venture between MAHAGENCO and NTPC.

The documents relied upon in NCLT relate solely to a contingent equity infusion and do not constitute a guarantee for loan repayment. The stipulated equity infusion of ~INR 2,455 crore has already been fully met and exceeded, with INR 3,026 crore infused by Rattan India Power Limited in FY 2017–18, leaving no residual obligation on EDL. Further the alleged invocation occurred during the COVID-19 moratorium period, during which initiation of insolvency proceedings was expressly barred forever under Section 10A of the IBC. In parallel proceedings against the primary obligor, Rattan India Enterprises Limited, on identical facts, the NCLT has categorically held that an equity infusion obligation does not amount to a corporate guarantee and has further dismissed the matter. EDL is vigorously contesting the contrary findings before the NCLAT and has received a stay on this matter; further comments are reserved as the matter is sub judice.

Accordingly, EDL is not subject to the IBC or the Corporate Insolvency Resolution Process. The company remains financially sound and fully operational, with no impact on its projects, obligations, or day-to-day operations. From a financial perspective, the matter relates to an exposure of approximately INR 370 crore, which is limited in scale when viewed against the company’s net equity base of approximately INR 10,000 crore, underscoring EDL’s strong balance sheet, liquidity position, and financial resilience.

EDL has made formal representations to BSE and NSE requesting the removal of its equity shares from the Additional Surveillance Measure framework and the BE (Trade-to-Trade) segment, in light of the subsisting NCLAT stay.

The company reiterates its commitment to transparency and prudent financial management and assures all stakeholders of its continued operational stability and projected growth. With a strong growth trajectory, on track to target pre-sales of approximately INR 5,000 crores in FY26—nearly doubling sales from FY25—driven by planned project launches, the company also maintains a robust long-term pipeline. EDL’s balance sheet strength has been further enhanced through the conversion of debt into equity, significantly improving financial flexibility and reducing leverage. With a land bank exceeding 3,000 acres—the largest among listed real estate developers in India—the company remains well positioned to sustain scale, execution momentum, and long-term value creation.