ED finds evidence of FDI violations by Emaar MGF | business | Hindustan Times
Today in New Delhi, India
Nov 18, 2017-Saturday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

ED finds evidence of FDI violations by Emaar MGF

The enforcement directorate (ED) on Friday claimed to have found “incriminating documents” pointing to large-scale FEMA violations by the realtor Emaar MGF.

business Updated: Dec 05, 2009 01:35 IST
Vivek Sinha

The enforcement directorate (ED) on Friday claimed to have found “incriminating documents” pointing to large-scale FEMA violations by the realtor Emaar MGF.

The authorities said that the purpose of remittances is very different than what has been mentioned in various declarations by the company.

An ED official added that facts were mis-reported by the company in its declarations.

“The group has floated more than 350 companies including large number of companies registered in Cyprus, Cayman Islands, Mauritius and Singapore. Huge amount of money was found to have been routed and re-routed through these companies,” said the official.

The ED authorities further said that the seized documents indicate that employees of the group with very low means have been shown as directors of the company.

The ED authorities further added that the company has availed more than Rs 6,000 crore of FDI in the last four years. “The company has about 12800 acre land bank of which 8700 acre is agricultural land. Most of the agricultural land have been acquired through the FDI funds which is a clear cut violation of FDI norms,” said ED authorities.

The group also appears to have diverted a large portion of FDI for other purposes including for acquiring an aeroplane. The company officials refused to comment on the issue.