Agastya07

Friday, Sep 2, 2011, 21:46 IST

The Supreme Court today issued a notice to CBI on real estate giant Emaar MGF seeking stay on the ongoing probe into its alleged connection with the case relating to disporportionate assets of Kadapa MP Jaganmohan Reddy, son of late Chief Minister YS Rajasekhar Reddy.
A bench of Justice Dalveer Bhandari and Justice Deepak Verma sought response from the CBI and State Handlooms and Textile Minister P Shankar Rao onwhose petition the agency was earlier directed by the high court to probe the allegations.

The bench refused to stay the ongoing investigation by the CBI into the alleged connection of DA case of Jagan with Emaar MGF and posted the matter for next week.

Emaar assailed the direction of high court for the CBI inquiry saying that such a probe can be ordered by the court only after coming to the conclusion after considering the material on record that there was a prima facie case against the person and the same can't be done in a routine manner.
"A decision to direct an inquiry by CBI against a person can only be done if the high court after considering the material on record comes to a conclusion that such material does disclose a prima facie case calling for an investigation by CBI or any other similar agency, and the same cannot be done as a matter of routine.

"It is submitted that when it is settled law that referring an investigation to CBI is an exception then the high court must in its judgment indicate as to what is so extra-ordinary or special in the case that only the CBI alone can investigate," Emaar added, saying that the direction of the court has not disclosed the reason for a special probe.
In his petition to Andhra Pradesh High Court, Rao had sought a CBI inquiry into the companies that had invested in Jagan's businesses to allegedly win favours in the form of land allotments and mining leases from the then YSR government.
Rao had alleged that Jagan's income rose from Rs11 lakh in 2004 to Rs43,000 crore by the time of his father's death in 2009.
On July 22, the Supreme Court, had refused to stay the high court's order for a preliminary CBI inquiry to ascertain if Jagan owns assets disproportionate to his income.

The apex court had said "at this stage" no interference was required into the high court's order as it was only a preliminary inquiry and the high court can refuse to proceed against him if nothing substantial comes out against him in the probe.

Jagan, who fell out with the Congress after being denied the chief ministership, had approached the apex court challenging high court order for a preliminary probe by the CBI to ascertain if he owned assets far exceeding his legal income saying that the whole issue was politically motivated.
Jagan, after being denied the chief minister's post following his father's death in a chopper crash, floated the YSR Congress Party on whose symbol he and his mother won the Kadapa Lok Sabha and Pulivendla Assembly seats respectively in recent by-polls.

Supreme Court notice to CBI on Emaar MGF plea against probe - India - DNA

MANOJa

The CBI, which is probing the alleged irregularities in APIIC-Emaar Properties land deal, on Thursday continued examination of buyers of the villas sold by Emaar and also questioned Telugu film actor Ramcharan Tej, son of actor-turned-politician Chiranjeevi.

The villas and plots in ‘Emaar Hills’ township project in Gachibowli were allegedly purchased by several people from the film industry, family members of politicians and businessmen. The CBI last week issued notices to over 80 persons in this regard. CBI, which is probing the alleged irregularities in APIIC-Emaar Properties land deal, on Thursday continued examination of buyers of the villas sold by Emaar and also questioned Telugu film actor Ramcharan Tej, son of actor-turned-politician Chiranjeevi.

The villas and plots in ‘Emaar Hills’ township project in Gachibowli were allegedly purchased by several people from the film industry, family members of politicians and businessmen. The CBI last week issued notices to over 80 persons in this regard. Ramcharan Tej — one of the villa owners — was quizzed for about one hour, CBI officials said. The agency is collecting information about buyers’ transactions with Emaar Hill Township Pvt Ltd (EHTPL), a joint venture of APIIC and Emaar Group. Andhra Pradesh Industrial Infrastructure Corporation (APIIC), in 2006, allotted 258 acres of land at Gachibowli to Emaar to develop an integrated township and a golf course.

CBI, on August 17, registered a case against B P Acharya, senior IAS officer and former Chairman and Managing Director of APIIC, and Emaar Group on the direction of the High Court, for cheating, criminal conspiracy and offences under Prevention of Corruption Act. The agency said Acharya, currently Principal Secretary (Home), entered into a criminal conspiracy with officials of Emaar Group and unknown public servants to cheat APIIC. One of the allegations is that Emaar sold plots at below the market rate prices, without the knowledge of APIIC, causing loss to it.izzed for about one hour, CBI officials said. The agency is collecting information about buyers’ transactions with Emaar Hill Township Pvt Ltd (EHTPL), a joint venture of APIIC and Emaar Group.

Andhra Pradesh Industrial Infrastructure Corporation (APIIC), in 2006, allotted 258 acres of land at Gachibowli to Emaar to develop an integrated township and a golf course. CBI, on August 17, registered a case against B P Acharya, senior IAS officer and former Chairman and Managing Director of APIIC, and Emaar Group on the direction of the High Court, for cheating, criminal conspiracy and offences under Prevention of Corruption Act. The agency said Acharya, currently Principal Secretary (Home), entered into a criminal conspiracy with officials of Emaar Group and unknown public servants to cheat APIIC. One of the allegations is that Emaar sold plots at below the market rate prices, without the knowledge of APIIC, causing loss to it.



APIIC-Emaar Probe: CBI Questions Chiranjeevi

MANOJa

The Central Bureau of Investigation (CBI) will be questioning Emaar MGF vice chairman and managing director Shravan Gupta in the Emaar-Andhra Pradesh Industrial Infrastructure Corporation (APIIC) joint venture township project case. The CBI has already arrested key accused, Koneru Prasad, in the case. Emaar MGF is the developer of the 235-acre township project promoted by Emaar Hills Township Projects Limited (EHTPL) in which Emaar and the APIIC held 74 and 26 per cent equity respectively.

Emaar MGF was roped in as the developer without the approval of the board of APIIC leading to a decrease in the state nodal agency’s holding to a mere 6 per cent. Moreover, Emaar MGF as well as Stylish Homes Private Limited, the marketing agency appointed by Emaar, had allegedly diverted the sale proceeds from villa plots by showing a price of just Rs 5,000 per square yard on the books as against the market price of upwards of Rs 40,000 per square yard, according to the investigative agency. Upon collecting direct evidence to this effect, the CBI had arrested Koneru Prasad, the owner of Stylish Homes and the original mediator responsible for Emaar securing the project from the AP government.

The CBI officials said they had already issued notices to Gupta to appear before the investigating officials in Hyderabad on his company’s role in the entire fraud played on APIIC. However, Gupta has asked for sometime citing his other engagements, according to them. “We will question Gupta as the money trail is also leading to Emaar MGF company,” a CBI official said. The state Vigilance and Enforcement department, which had submitted a detailed report on the issue to the state government much before the AP High Court ordered a CBI probe into the whole case, had in its report maintained that MGF officials had collected money from buyers while keeping EHTPL in the dark and also booked the plots under the names of MGF staff working in Delhi.


CBI to Question Emaar MGF VC&MD

MANOJa

Hyderabad: The Central Bureau of Investigation (CBI) today questioned Rajya Sabha member KVP Ramachandra Rao of the Congress, in connection with the Emaar-APIIC township scam.
KVP, who was said to be very close with the late chief minister YS Rajasekhara Reddy, said he was called by the CBI as a witness in the case.

"I was called as a witness in the case under section 160 (of CrPC). They wanted some details. I have provided them what all I know and I will cooperate with the CBI," KVP told reporters after the questioning.

He was the government advisor, when the share of the state-owned Andhra Pradesh Industrial Infrastructure Corporation (APIIC) was allegedly reduced in a township project, jointly developed by the corporation and Emaar.

The agency had arrested businessman Koneru Prasad in the case in November last year. It was a first arrest in the case registered in August last year on the direction of the Andhra Pradesh High Court.

Dubai-based real estate firm Emaar Properties and its Indian associates were booked by the CBI for allegedly cheating APIIC in the township project. The investigating agency has named the then managing director of APIIC B P Acharya, Emaar Properties, EHTP, Emaar MGF and Stylish Homes of Koneru Prasad, besides some unnamed public servants as accused in the case.


Emaar-APIIC twonship scam: CBI quizzes MP

sublimation

TNN | Jan 29, 2012
HYDERABAD: With only three days left to file its chargesheet in the Emaar case, the CBI on Saturday arrested G Vijay Raghav a top Emaar-MGF official. Since the CBI court judge is on leave, the CBI authorities produced him before the Economic Offences Court and its judge R Sudhakar Naidu sent him to judicial remand till January 30.

The CBI has to file its chargesheet in the Emaar scam by February 1, the 90-day time limit from the time the probe agency effected the first arrest three months ago by laying its hands on Koneru Rajendra Prasad, Dubai Emaar's liason officer.

Vijay Raghav was shown as a key person in the remand report submitted to the court by the CBI. He is the head of finance wing (south) of Emaar- MGF and also the financial controller of the joint venture company Emaar Hills Township Pvt Ltd (EHTPL) that came into existence after an MoU was signed between the state government and Emaar Properties, Dubai.

The CBI in its remand report charged Vijay Raghav with being an accomplice of the other accused in the scam with full knowledge of the fraud that was going on to cheat the public sector partner APIIC and to help unscrupulous private entities and individuals.

The report says that he knew that the villas were being sold at more than Rs 60,000 per square yard and that only Rs 5,000 was shown in official records with an intention to cheat the state.

In fact, several villas were shown to have been sold to various parties in Karnataka, Coimbatore etc, but no such buyers exist, the CBI said in its report coming to a conclusion that these villas were retained by MGF's top brass under benami names, the report says.

It was Vijay Raghav who deposited Rs 5,000 per square yard in cash form with the state authorities despite knowing fully well that they were sold for a much higher price. Vijay Raghav, the latest entrant in the Emaar accused list, is charged with offences under IPC sections 120B
Source:times of india

MANOJa

CBI charges Emaar with financial irregularities

MANOJa

NEW DELHI/HYDERABAD: CBI recently filed a chargesheet in a land scam case of Andhra Pradesh in which it said realty firm Emaar-MGF (EMLL) 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 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 rate and it was the responsibility of EMLL to fix the rate. However, the company did not take any action in this regard.

The case relates to the land scam of Hyderabad in which principal home secretary of the state B P Acharya and other bureaucrats are also accused of allegedly hatching a conspiracy to cheat the exchequer of Rs 43.50 crore while EMLL and Dubai-based Emaar Properties PJSC earned Rs 167.29 crore.

EMLL managing director 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, the CBI 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 a premium later, the agency said.

The CBI carried out investigations on the instructions of 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% shares. These companies allegedly blocked 18 plots at a rate of just Rs 5,000 per square yard in 2010 while the market rate was Rs 50,000 per square yard, the agency said.

The CBI carried out forensic examination of the laptop of Vijay Raghav who was the head-south of EMLL which revealed that the company allegedly sold another set of 16 villa plots at a much higher rate in 2009-10. However, they accounted only Rs 5,000 per square yard in account books while the rest was taken in cash as misappropriation by the company, the agency alleged.

Accusing the company of criminal conspiracy and cheating besides other charges under the Indian Penal Code, the CBI alleged that EMLL sold another set of 102 villa plots and misappropriated the amount. The agency found that Rs 48 crore was payable to Emaar Hills Township Private Limited (EHTPL) by EMLL which was to be further shared with APIIC. The CBI alleged it was never transferred to the books of accounts of EHTPL to deprive APIIC from its due revenue share.

The CBI alleged that EHTPL was a shell company managed by employees and officials of EMLL with the sole purpose to deprive profits to APIIC and misappropriate the revenues from the integrated project. "258.36 acres of land was further assigned by M/s EHTPL in favour of M/s Emaar MGF Land Ltd vide development agreement dated July 25, 2007 without the consent of APIIC, though it had 26% equity in the said land," the CBI alleged. The additional land was also disposed of by EMLL in a similar fashion by showing sale proceeds as Rs 5,000 per square yard while misappropriating the excess amount in cash.



'Emaar-MGF proxies usurped AP land' - The Times of India

MANOJa

HYDERABAD: Former Emaar MGF CEO Srikanth Joshi, an accused in the APIIC-Emaar Properties case related to irregularities in the development of a township, on Monday appeared before the Central Bureau of Investigation (CBI) and was questioned for nearly five hours.

Joshi is currently CEO of L&T Realty.

The special court dealing with the CBI cases on Feb 29 had directed Joshi to make himself available for the investigation agency for five days from March 5 to 9. The federal agency will question him between 9 a.m. to 5 p.m. every day.

The court had given the direction while adjourning the hearing the anticipatory bail petition of Joshi till March 14.

The CBI, which has already filed the chargesheet against Joshi and 12 others, gave an assurance to the court that it would not arrest Joshi at least till the disposal of his anticipatory bail petition.

The investigating agency has opposed his bail plea on the ground that he may influence the witnesses.

The case relates to alleged irregularities in the development of a township at Gacchibowli in Hyderabad by Emaar Properties and Andhra Pradesh Industrial Infrastructure Corporation (APIIC).

Dubai-based Emaar and its Indian associate companies allegedly in collusion with some bureaucrats diluted the equity of APIIC, causing huge losses to the state exchequer.

Joshi, as CEO of Emaar MGF, in 2007 had executed the development agreement-cum general power of attorney allegedly without the consent of APIIC, the joint venture partner in the project.

The CBI has alleged that he along with the other accused hatched a criminal conspiracy and committed irregularities. Joshi, however, has denied the allegations.




APIIC-Emaar Properties case: CBI questions ex-CEO of Emaar MGF Srikanth Joshi - The Economic Times

MANOJa

HYDERABAD: Justice K C Bhanu of the A P High Court on Thursday sought to know why the CBI failed to issue a Red Corner notice against Shravan Gupta, the managing director of Emaar-MGF Land Ltd even though he was eluding the law. Gupta is one of the 14 accused in the Emaar scam case and is charged with misappropriation of public money and assets.

When the bail petition of Koneru Rajendra Prasad, another accused in the case, came up for hearing, his counsel C Padmanabha Reddy raised the issue of CBI's 'differential' treatment. The judge then asked the CBI why it chose to arrest only some of the accused while letting off others in the case. When the issue of Shravan Gupta came up, CBI counsel P Kesava Rao told the court that he was absconding. "Then why did you request the trial court to issue summons to him instead of getting a Red Corner notice issued against him?" the judge asked.

During the hearing, the judge also sought to know under what authority was the state or its agencies like APIIC handing over prime land to private players. When the CBI counsel referred to a GO that authorized the deal, the judge shot back asking him as to wherefrom these authorities had derived power to issue such GOs and enter into such agreements with private players. The judge sought details of public and private land acquired for the Emaar project.

When the counsel spoke of a suit filed by the APIIC in the civil court seeking recovery of lost money, the judge expressed his anguish saying, "What is the purpose of filing a civil suit after everything is lost? What is the use of conducting a postmortem now?" The CBI counsel, however, explained to the court that the agency denied any discrimination against any of the accused. The CBI counsel also brought to the notice of the court the problems the agency was facing on account of delay in getting the sanction from the Centre to prosecute IAS officials.

During the course of the hearing, the counsel for Koneru told the court that all the land was transferred to Emaar at Rs 29 lakh per acre and maintained that it was an absolute sale. The judge also wondered as to why even the proceeds of an outright sale of land did not reach the state coffers. The CBI counsel explained that Emaar allotted shares to the state instead of paying cash. "If it is an absolute sale, how can shares be allotted?" the judge asked.

After hearing the versions of both the parties, the judge reserved his orders on Koneru bail plea to Tuesday. The judge will also hear the CBI petition challenging the cancellation of bail given by the trial court to IAS officer BP Acharya, accused number one in the scam on Tuesday.




HC pulls up CBI for letting off Gupta - The Times of India

Varun84

Hyderabad: The Central Bureau of Investigation (CBI) will file an additional chargesheet in the Emaar township scam, focusing on the role of the accused who were not covered in the first chargesheet.

Sunil Reddy, said to be an aide of YSR Congress party leader YS Jaganmohan Reddy and Emaar MGF finance head (south) GV Vijaya Raghav are likely to figure in the supplementary chargesheet.

After the investigating agency gave indications towards this effect, Sunil Reddy on Monday withdrew his bail petition in Andhra Pradesh High Court. His counsel informed the court that a fresh bail petition would be moved after the CBI files a supplementary chargesheet.

The federal agency also submitted to the high court details of the bank transactions made by Sunil Reddy. The CBI counsel, B. Ravindranath informed the court that Rs.63 crore received from the sale of villas in the township were invested into Sunil Reddy's firm, South End Projects.

Meanwhile, the CBI is set to intensify its probe, focusing not only on the role of Sunil Reddy and Vijay Raghav but also on Emaar MGF Land Ltd Managing Director Shravan Gupta and other accused in the alleged "criminal conspiracy".

After informing the high court last week that it would complete the probe in the case by April-end, the investigating agency is now looking into the role of Shravan Gupta, Mohamed Ali Alabbar, chairman, Emaar Properties PJSC, Dubai, and businessman Koneru Madhu.

The three accused did not appear before the trial court along with others on March 31. The federal agency is now likely to issue red corner notices.

The CBI has also come under criticism for allegedly showing discrimination towards some of the accused.

The high court while hearing the bail petition of Koneru Prasad, one of the accused, last month asked CBI why it failed to issue red corner notice against Gupta, even though he was shown as an absconder in the case.

The CBI chargesheet filed in February said Emaar MGF Land Ltd under then CEO of Emaar MGF Land Ltd, Srikant Joshi and Managing Director Shravan Gupta did not fix the price of the plots as per the prevailing market rate.

According to chargesheet, 10 different companies (7 at New Delhi and 3 at Ernakulam) were created at the instruction of Gupta to block 18 plots in their names with an intention of selling them at a premium, at a later date.

"The funds for incorporating/ acquiring these companies were transferred from the account of M/s Discovery Estates Pvt. Ltd., in which Shri Shravan Gupta and his wife are having 99 percent shares," said the chargesheet.

The CBI, which took up investigations last year on the direction of the high court, alleged that the accused in collusion with some Indian Administrative (IAS) officers, conspired to hijack the joint venture project with Andhra Pradesh Infrastructure Investment Corporation (APIIC).

The scam relates to the sale of villa plots in 2010 at literally throwaway prices of Rs. 5,000 a sq yard against the prevailing market price of Rs. 50,000 a sq yard.

Emaar Hills Township Pvt Ltd (EHTPL), the SPV formed to execute the project, without the knowledge of APIIC transferred the development rights of the project to its sister company Emaar - MGF. The CBI argues that the share of APIIC was brought down from 26 percent to 6.5 percent, causing losses to state exchequer.

The accused in the case are - senior IAS officers BP Acharya, LV Subrahmanyam, retired IAS officer KV Rao and T Ranga Rao.


CBI to file supplementary chargesheet in Emaar case