CBI arrests Koneru Prasad in Emaar case

The Central Bureau of Investigation has made its first arrest in the Emaar-APIIC township project scam by taking Koneru Prasad into custody on Thursday.

Prasad is a key accused in the ongoing investigation into alleged fraud played on the state's nodal agency by the Dubai-based company and its Indian associates.

Prasad allegedly received money towards plots developed by Emaar MGF in the controversial township project from buyers after grossly undervaluing the market price, causing a huge financial loss to the joint venture company in which APIIC holds 26 per cent equity.

The arrest was effected after the investigative agency collected direct evidence against him wherein the money paid by some buyers towards the villa plots was credited into his own bank accounts.

The state Vigilance and Enforcement department, which had earlier investigated the case, held that the agreement entered between Emaar and Stylish Homes Private Limited, allegedly owned by Prasad for marketing over 100 plots at the rate of Rs 5,000 per square yard, was essentially designed to siphon off money that would have gone to the joint venture company.

The state agency further held that the plots were sold upwards of Rs 40,000 per square yard and all the excess money was privately collected by Stylish Homes, MGF officials.

A number of high profile individuals, including politicians and ministers, own plots in the project.

Prasad, who is a businessman with close links with the West Asian governments and a couple of AP chief ministers in the past, had also played a key role in granting the project to Emaar way back in 2002.

The AP High Court ordered the CBI probe after finding prima facie evidence in the alleged fraud. Prasad is expected to be produced before the CBI special court on Friday morning.