Karnataka HC sets aside vacation bench order in KIADB land dispute, restores matter for fresh hearing

A Division Bench comprising Chief Justice Vibhu Bakhru and Justice K.S. Hemalekha passed the order while hearing an appeal filed by businessman Tejraj Gulecha against the Single Judge's order dated May 12.

The Karnataka High Court has set aside a vacation bench order that had granted relief to Embassy East Business Park Ltd in a dispute over a 78-acre land parcel in Bengaluru's Whitefield area and directed that the matter be heard afresh by the regular roster bench. A Division Bench comprising Chief Justice Vibhu Bakhru and Justice K.S. Hemalekha passed the order while hearing an appeal filed by businessman Tejraj Gulecha against the Single Judge's order dated May 12.

The dispute concerns a 78-acre parcel of land in the Kadugodi Industrial Area of Whitefield, reportedly valued at over ₹3,000 crore. A portion of the land, around 25 acres, was subsequently transferred to semiconductor equipment manufacturer Lam Research in a transaction reportedly worth about ₹1,125 crore. During the hearing, counsel appearing for Gulecha challenged the propriety of the matter being taken up during the High Court's summer vacation despite an earlier direction to list it after the vacation period. It was argued that certain affected parties were not notified and that the vacation bench had relied upon material placed by Embassy East.

After hearing the parties, the Division Bench noted that the parties had agreed that the May 12 order could be set aside without any observations on the merits of the dispute. The Court accordingly restored the writ petition for consideration by the regular bench. The Bench clarified that its order that "We have not expressed any opinion on this question. All contentions of the parties are reserved," the Court recorded.

The Bench directed that the writ petition be listed before the concerned roster bench on June 22, 2026. It further clarified that all interim orders that were in force in the writ petition as on May 12, 2026, would stand revived. The appeal and all pending interlocutory applications were accordingly disposed of. Earlier, Embassy Developments had described the May 12 order as a significant relief, as it prevented the Karnataka Industrial Areas Development Board (KIADB) from proceeding with its move to resume the land. With the vacation bench order now set aside, the controversy over the Whitefield property will once again be considered by the regular bench of the High Court.

However, Embassy Developments Ltd has informed stock exchanges that the Karnataka High Court's Division Bench has set aside a vacation bench order that had granted relief to its subsidiary, Embassy East Business Park Ltd (EEBPL), in a dispute over about 78 acres of land at Bengaluru's Kadugodi Industrial Area. The company said the High Court has not expressed any view on the merits of the dispute and has restored the matter for fresh consideration by the regular bench. The Embassy and EEBPL maintained that the KIADB resumption order is liable to be set aside and said they will pursue appropriate legal remedies to protect their interests. (ANI)