Bengaluru, June 17, 2025 – Cornerstone, a Bengaluru-based land-holding and development company, is set to raise approximately ₹1,700 crore through a structured funding strategy. This effort includes a capital infusion from Kotak Alternate Asset Managers Ltd (KAAML) via non-convertible debentures and strategic monetization of its land assets.
The capital is aimed at fueling growth across six residential projects in East Bengaluru, two commercial developments in the city centre, and consolidating land holdings in North Bengaluru. The residential developments alone have a combined gross revenue potential of nearly ₹25,000 crore, with an additional ₹3,000 crore LRD (loan‑against‑property) scope from the commercial ventures.
Context of the Financial Dispute
The financing move also serves as a strategic step in settling a dispute with L&T Finance arising from loans granted between 2017 and 2019. While ₹1,285 crore in loans were approved for four projects—including joint ventures with Brigade and Sobha—only ₹835 crore was eventually disbursed. L&T Finance, along with ARCIL, subsequently designated Cornerstone’s account as an NPA and attempted recovery, including a demand notice under Section 13(2) of SARFAESI.
Despite recovering approximately ₹1,400 crore from the sold JV projects, Cornerstone contends this exceeded the targeted 14.4% IRR, as collections have crossed the 16% mark. The developer argues that further recoveries are unwarranted.
In April, ARCIL issued a demand notice before expiry of the statutory 60-day resolution period, prompting Cornerstone to seek relief. The Karnataka High Court, on June 3, granted an interim stay against coercive measures and instructed ARCIL to justify their actions and consider cost penalties.
Funding Tied to Legal Breather
Currently, Cornerstone reports that funds are being held in escrow by L&T Finance but are not being appropriated. The Karnataka High Court’s interim stay provides a vital buffer during critical processes such as land title transfers, registrations, and compliance measures—essential prerequisites for Kotak’s fund deployment.
If Kotak’s ₹1,700‑crore structured NCD package is implemented, it will bolster Cornerstone’s ability to restart the stalled projects and support new launches, all while navigating the ongoing legal proceedings.
What Comes Next
Cornerstone is pressing ahead on two fronts: legally opposing any further recovery efforts and operationalizing the Kotak-led funding to accelerate stalled projects and unlock new growth potential. The outcome of these dual tracks could reshape the company’s financial footing and project roadmap across Bengaluru.
ALSO READ: Mumbai Is India’s Most Expensive Housing Market in 2025; Bengaluru Sees Highest Price Growth