Karnataka Industrial Areas Development Board orders resumption of 78 acres in Bengaluru’s Kadugodi

Bengaluru: Cracking whip over alleged misuse of land allocation, Karnataka Industrial Areas Development Board (KIADB) has ordered resumption of about 78 acres of land allotted to the Embassy East Business Park Limited (formerly known as Concord India Ltd) in Kadugodi Industrial Area, citing multiple violations of allotment conditions and unauthorised transactions.

In an order issued by KIADB chief executive officer last week under Section 34-B of the KIAD Act, the company was directed to surrender possession of the land within 30 days. The land, originally allotted for developing infrastructure for multinational IT and IT-enabled services companies, remained largely undeveloped despite multiple extensions granted to the allottee firm. The KIADB noted that even as of Nov 2025, no substantial construction activity had commenced at the site.

The KIADB officials also revealed that an individual inspection by the board also revealed that the company had entered into several agreements, including sub-lease arrangements and agreements to sell portions of the land to third parties such as LAM Research India Pvt Ltd, without obtaining requisite permissions. The board observed that while limited sub-leasing is permissible under the lease-cum-sale agreement, outright or conditional sale agreements and receipt of consideration are strictly prohibited.

Some of the documents that were examined by KIADB revealed the company executed an agreement to sell 25 acres of the land and received consideration amounting to over Rs 1,125 crore, despite lacking alienable title over the property. Additional transactions involving other entities, including agreements with Nuziveedu Seeds Ltd and Mandava Holdings Pvt Ltd, were also found to be in violation of the lease terms.

However, the allottee defended its actions, stating the agreements were conditional and intended to accelerate project development through strategic partnerships. It argued that no actual transfer of title or possession had taken place and that all arrangements were subject to KIADB approvals. But the KIADB officials refused to accept the arguments and held that the execution of such agreements and receipt of funds without prior approval constituted clear breaches of the lease conditions.

Company challenges order in court

A spokesperson from Embassy East Business Park Limited said the KIADB order is not legally tenable and is without merit. “The transactions referred to have been undertaken in compliance with the applicable agreements and with requisite approvals to the extent required. At no point has there been any transfer of title, creation of encumbrance, or conveyance of interest in violation of the applicable conditions in the agreements. A writ petition has already been filed before the high court of Karnataka challenging the order,” added the spokesperson.