Emaar MGF created 10 firms to usurp land: CBI | delhi | Hindustan Times
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Emaar MGF created 10 firms to usurp land: CBI

delhi Updated: Feb 12, 2012 16:32 IST

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Reality firm Emaar-MGF (EMLL) had allegedly created 10 companies in the name of its employees on directions of its MD to usurp prime land being developed near Hyderabad, causing loss to a state-run firm, the CBI has said in its charge sheet.

The CBI alleged that as per the agreement dated January 29, 2005, over 100 villa plots under Andhra Pradesh Industrial Infrastructure Corporation (APIIC) were to be sold at the prevailing market rates and it was the responsibility of EMLL to fix the rates in accordance with the prevailing market rates. However the company did not take any action in this regard.

The case related to the land scam of Hyderabad in which principal home secretary of the state BP Acharya and other bureaucrats are also accused of allegedly hatching conspiracy to cheat the exchequer of Rs 43.50 crore while Emaar MGF Land Ltd and Dubai-based Emaar Properties PJSC minted Rs 167.29 crore.

Managing director EMLL Shravan Gupta allegedly gave "instructions" to acquire or incorporate 10 companies (seven in Delhi and three in Ernakulam) with his company's employees as directors and shareholders of these companies, the CBI has alleged in the charge sheet filed in a Hyderabad court.

The purpose of these companies was to block prime plots in the project which could be sold at premium rates at a later stage, the agency said.

When contacted, official spokesperson for Emaar MGF said, "We are yet to receive a copy of charge sheet. The matter is subjudice and we cannot comment on the same.

"We have full faith and confidence in the law of the land and as a responsible corporate we are providing the information being asked and supporting all enquiries".

The CBI which carried out investigations on the instructions of Andhra Pradesh High Court after it was found that funds for setting these companies were allegedly transferred from the Discovery Estates Private Limited in which Shravan Gupta and his wife hold 99% shares.

These companies allegedly blocked 18 plots at a meagre Rs 5000 per square yards in the year 2010 while the market rates were Rs 50,000 per square yards, the agency said.