Emaar MGF created 10 firms to usurp prime land: CBI

Realty firm Emaar-MGF (EMLL) had allegedly created 10 companies in the name of its employees on directions of its managing director to usurp prime land being developed near Hyderabad, causing loss to a state-run firm, the Central Bureau of Investigation (CBI) has said in its chargesheet.

By an agreement dated January 29, 2005, about 100 villa plots under the Andhra Pradesh Industrial Infrastru-cture Corporation were to be sold at the market rates and it was the responsibility of EMLL to fix these. 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 B P Acharya and other bureaucrats are also accused of hatching a conspiracy to cheat the exchequer of Rs 43.5 crore, while Emaar MGF Land Ltd and Dubai-based Emaar Proper-ties PJSC minted Rs 167.3 crore. Managing director Shravan Gupta allegedly gave instructions to acquire or incorporate 10 companies (seven in Delhi and three in Ernakulam) with his employees as directors and shareholders of these, the CBI has alleged in the chargesheet, 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, an official spokesperson for Emaar MGF said, “We are yet to receive a copy of the chargesheet. The matter is sub judice and we cannot comment. 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.”

CBI carried out investigations on the instructions of the Andhra Pradesh high court, after it was found that funds for setting up these companies were allegedly transferred from Discovery Estates Private Limited, in which Shravan Gupta and his wife hold 99 per cent shares. These companies allegedly blocked 18 plots at a meagre Rs 5,000 per sq yd in the year 2010, while the market rates were Rs 50,000 per sq yd, the agency said.