Bengaluru-based land holding and development company Cornerstone is set to raise Rs 1,700 crore through a combination of funding from Kotak Alternate Asset Managers (KAAML) and land monetisation.

The capital, structured via non-convertible debentures, will be used to support residential and commercial projects in Bengaluru, including six residential developments in the east and two commercial projects in the central zone, alongside land consolidation in the north.

This strategic move comes as the company aims to reboot its business and resolve a matter with L&T Finance over loans sanctioned between 2017 and 2019. Although Rs 1,285 crore was approved, only Rs 835 crore was disbursed, triggering project delays. Despite recovering over Rs 1,400 crore, L&T and ARCIL classified the account as a non-performing asset, and Cornerstone secured interim relief from the Karnataka High Court.

The company is now negotiating a full and final settlement, including alternative collateral. The proposed investments by KAAML are contingent on clean titles and regulatory compliance, both safeguarded temporarily by the court’s order. Cornerstone continues efforts to revive operations amid ongoing legal proceedings.