Embassy Office Parks REIT has informed the Exchange regarding Disclosure of material issue
Awaiting price reaction for this filing.
Embassy REIT disclosed details of a long-running dispute with Sterling Wilson (SWREL/SWPL) over an alleged ₹100 crore non-payment by its SPV Embassy Energy (EEPL). EEPL had no direct contract with Sterling Wilson — the main contractor was ISPL, to whom EEPL paid approximately ₹777.94 crore between 2019–2020, after which ISPL issued a no-dues certificate in December 2020. The NCLT Bengaluru (2022) and NCLAT Chennai (2023) both ruled in EEPL's favour, holding no contract existed between EEPL and Sterling Wilson. Despite these rulings, Sterling Wilson filed an FIR in 2023 and a chargesheet in November 2024 against EEPL and individuals Jitendra Virwani and Karan Virwani, a summary suit before the Commercial Court Bengaluru in 2024 seeking ~₹188.89 crore, and a complaint to SEBI in April 2025 alleging non-disclosure and fit-and-proper non-compliance. Embassy REIT says it has responded to SEBI and contests all claims as frivolous and vexatious.
Unitholders face no admitted financial liability — Embassy REIT has consistently prevailed at NCLT and NCLAT, and EEPL's obligations were discharged years ago. However, ongoing criminal proceedings, a pending civil suit of ~₹188.89 crore, and SEBI correspondence create prolonged uncertainty that may weigh on sentiment even though management views the claims as baseless.