Embassy Developments Limited (EDL) has issued a formal clarification confirming that the company is not subject to any proceedings under the Insolvency and Bankruptcy Code (IBC), 2016 and remains fully solvent and operational.
The statement follows a petition filed by Canara Bank before the Hon’ble NCLT, Delhi Bench, on December 11, 2025. On the same day, the Hon’ble National Company Law Appellate Tribunal (NCLAT) granted a complete and unconditional stay on the NCLT order, thereby halting all IBC proceedings. EDL promptly informed the stock exchanges and submitted a copy of the NCLAT order.
EDL management reiterated that the company has no debt obligation and has not issued any corporate guarantee as alleged. The matter pertains to Sinnar Thermal Power Limited, which is not a related party of EDL or the Embassy Group today. Sinnar’s resolution was completed on November 28, 2025, with 100% creditor consent, including Canara Bank, which received approximately ₹63 crore (1.7% share). The asset has since been taken over by a joint venture between MAHAGENCO and NTPC.
The documents cited in NCLT relate solely to a contingent equity infusion, not a loan guarantee. The stipulated infusion of ₹2,455 crore was already exceeded, with ₹3,026 crore infused by Rattan India Power Limited in FY 2017–18, leaving no residual obligation on EDL. Moreover, the alleged invocation occurred during the COVID‑19 moratorium period, when initiation of insolvency proceedings was expressly barred under Section 10A of the IBC.
EDL emphasized that the matter involves an exposure of approximately ₹370 crore, which is limited compared to its ₹10,000 crore net equity base, underscoring its strong balance sheet and liquidity. The company has requested BSE and NSE to remove its shares from the Additional Surveillance Measure (ASM) framework and the BE (Trade‑to‑Trade) segment in light of the NCLAT stay.
Looking ahead, EDL remains financially sound and operationally stable, with a strong growth trajectory. The company is on track to achieve ₹5,000 crore in pre‑sales for FY26, nearly doubling FY25 sales, supported by planned project launches. With a land bank exceeding 3,000 acres, the largest among listed real estate developers in India, EDL is well positioned to sustain scale, execution momentum, and long‑term value creation.
