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 B P 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 per cent 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.
The CBI carried out forensic examination of 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 rates in 2009-10.
However, they accounted only Rs 5,000 per square yards in account books while 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 the 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 the employees and officials of EMLL with a 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 the similar fashion by showing sale proceeds as Rs 5000 per square yard while misappropriating the excess amount in cash
APIIC-Emaar land deal: NBW against Emmar MGF MD Shravan Gupta
Hyderabad: A special CBI court today issued a non-bailable arrest warrant (NBW) against Emaar MGF Land managing director Shravan Gupta in connection with the alleged irregularities in the APIIC-Emaar land deal case after he failed to appear before it despite directions.
After taking cognisance of the supplementary chargesheet filed in the Emaar township scandal in April, the court of Principal Special Judge for CBI cases also issued a prisoner transit (PT) warrant against two other accused G V Vijaya Raghava, finance head of Emaar MGF (South) and N Sunil Reddy, an alleged aide of Kadapa MP Y S Jaganmohan Reddy, to enable Chanchalguda jail authorities to produce them before it on June 18.
The CBI in the supplementary chargesheet had stated that Gupta was "absconding" since January and there was no response to notices served on his addresses.
CBI moved an application to secure his presence in the court and issued the NBW against him.
Gupta is one of the 14 accused in the Emaar scam case and is charged with "misappropriation" of public money and assets.
CBI in its chargesheet filed on February 1 against suspended IAS officer B P Acharya and others comprising individuals and private companies had charged them under relevant sections of IPC and Prevention of Corruption Act in the alleged irregularities in land transfer and sale of villas and apartments in the township project at Gachibowli here.
The CBI, in its FIR in August last year, charged Acharya, then Chairman and Managing Director of Andhra Pradesh Industrial Infrastructure Corporation (APIIC), of entering into a criminal conspiracy with officials of Emaar Group and unknown public servants to cheat the state-run APIIC and secure wrongful gains to Emaar.
The central agency had earlier alleged that APIIC was deprived of its legitimate revenue share to the tune of Rs 43.5 crore from the Integrated Township Project it developed jointly with Emaar Group at Gachibowli even as Emaar Properties and Emaar MGF obtained pecuniary gain of about Rs 167 crore.
HYDERABAD: The CBI on Wednesday informed the CBI Court that it had no intention of arresting Shravan Gupta, managing director, Emaar- MGF. The court had earlier summoned Gupta and asked him to appear before both the court on August 23. CBI deputy legal advisor B Ravindranath told this to court when the anticipatory bail plea of Shravan came up for hearing. Gupta's counsel Dil Jit Singh Ahluwalia contended that in view of the order of the CBI court his reasonable apprehension now boils down to Gupta being detained at the airport due to the look-out notice issued against him, he would be arrested upon his arrival at the airport. Circular opened against him or being arrested after arrival so as to frustrate the orders of this court..
However, the CBI counsel denied any such move and stated that the arrest of Gupta CBI was to arrest Gupta to prevent appearance before the Court, it
would invite contempt of court proceedings. He also said there was no look-out circular against Gupta. CBI gave a memo stating that there is no Look Out Circular against Gupta. Dil Jit clarified that only apprehension which remains is arrest prior to August 23, and to obviate any mischief, undertaking could be given by CBI to the court. The CBI counsel undertook that Gupta would not be arrested to frustrate the order of the court.
The CBI judge would deliver his order on Gupta's bail plea on Thursday.Meanwhile, the court also reserved its orders on MGF's finance head Vijaya Raghava bail plea to August 3.
The CBI that is investigating Emaar scam on Wednesday informed the CBI Court that it has no intention of arresting Emaar- MGF's MD Shravan Gupta in view of the court's order directing him to appear before both the court and CBI from August 23. CBI deputy legal advisor B Ravindranath told this when the anticipatory bail plea of Shravan came up for hearing.
CBI files supplementary chargesheet in APIIC-Emaar case
Hyderabad : CBI today filed a supplementary chargesheet in APIIC-Emaar properties deal case in a local court.
"The chargesheet mentioned the end-use of crime proceeds of the deal. Additional witnesses and documents were produced in the supplementary chargesheet filed in the special CBI court here," deputy Legal Advisor to CBI B Ravindranath told PTI.
The CBI, which is investigating the alleged irregularities in transfer and sale of villas and apartments in an upscale township in Hyderabad, had named senior IAS officer B P Acharya, presently under judicial remand in Chanchalguda jail here, and 11 others in its main chargesheet filed on February 1, in a local court.
Acharya was the vice-chairman and managing director of the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) during 2005-10 when the alleged irregularities were committed.
The controversy centres around dilution of APIIC's equity in the project and also Emaar roping in its group company Emaar MGF Land Ltd as a co-developer for the 258-acre integrated township project at Gachibowli here involving construction of residential villas, apartments and a golf course.
A CBI official said on condition of anonymity that the land belonging to an "influential family from the state" was "purposefully excluded" when the lands for the project were being acquired during 2005-10.
"Some of the land which was handed over to APIIC for the project was later encroached upon by some individuals," he said.
The alleged scandal is said to have caused the loss of Rs 215 crore to the state exchequer, the official added.
The developers of Emaar integrated township project are accused of undervaluing the lands that were sold at higher prices to individual buyers causing huge revenue loss.
Enforcement Directorate attaches properties worth Rs 71-crore in Hyderabad land scam
NEW DELHI: Plots owned by Dubai-based Emaar Properties, its joint venture Emaar MGF and others worth Rs 71 crore have been attached by the Enforcement Directorate in connection with its probe into alleged irregularities in land transfer and sale of villas and apartments at Hyderabad.
The agency has attached 34 villa plots created in Boulder Hills, Guchibowli in Hyderabad and another piece of land in Delhi's Kalkaji under the Prevention of Money Laundering Act (PMLA), months after the CBI had registered a criminal case in this regard.
"The proceeds of crime identified so far to the tune of Rs 71.27 crore have been attached from M/s Emaar Hills Township Private Limited (at the head of Emaar properties, Dubai) and EMGF Land Limited," the attachment order said.
When contacted, an Emaar MGF spokesperson said "we have not received any notice" from the agency and hence cannot comment on the development.
The ED action comes after the CBI earlier this year had registered an FIR against senior Andhra Pradesh IAS officer and Home Secretary B P Acharya and four other senior officials, these two firms and others-- M/s Stylish Holmes Real Estate Private Limited and M/s Boulder Hills Leisure Private Limited.
The ED had made the CBI FIR the basis of its probe and booked a case under various sections of IPC relating to criminal conspiracy, cheating, criminal breach of trust among others and relevant sections of Prevention of Corruption Act on the orders of Andhra Pradesh High Court.
The case relates to an upscale township project developed by Hyderabad-based real estate developer Emaar, its joint venture with the Dubai based firm and Andhra Pradesh Industrial Infrastructure Corporation where Acharya was posted as Managing Director between 2005 and 2009.
The ED has attached Rs 6.86 crore worth land in national capital's Kalkaji which is in possession of M/s Eternal Buildtech Private Limited which is a 100 per cent subsidiary of M/s Emaar MGF Land Limited.
The ED probe, according to sources, found "that subsequent to the agreements between M/s Emaar Hills Township Private Limited and other companies namely M/s Stylish Holmes and M/s Emaar MGF Land Limited were designed to sell villa plots in the township project under criminal conspiracy.
"These three companies had sold villa plots at the rate disclosed in the books but collected excess amount and concealed the same to deprive the state corporation from its legitimate revenue share from the developed land," the ED said.
HYDERABAD: Mines minister Galla Aruna Kumari's son Jayadev and daughter Rama Devi got 2.20 acres of Emaar land in an illegal way and started illegal constructions with the tacit support of B P Acharya, the then MD of APIIC, said CBI on Tuesday in its counter affidavit opposing the bail plea of Acharya, accused number one in Emaar scam.
Similarly, Tollywood director G Vijaya Nirmala and some others could save their 11 acres from acquisition for the Emaar project because Acharya allowed the relevant land acquisition notification irrelevant by not initiating steps as was required of him, the CBI officials said.
Meanwhile, senior counsel C Padmanabha Reddy has questioned the approach of the CBI in arresting one minister (Mopidevi Venkata Ramana) and leaving out the other (Dharmana Prasada Rao) in the Vanpic case. Arguing for Mopidevi's release on bail, the counsel on Monday wanted to know the logic behind the probe agency's argument that his client would tamper with evidence if released on bail. "It is four-and-a-half months since he (Mopidevi) has been in jail and his role in Vanpic is relatively minor compared to that of Dharmana, who allotted more than 18,000 acres for the project," the counsel said. "What is it that Mopidevi can do now from jail that cannot be done by Dharmana from outside? It is wrong to prosecute one minister for the collective decision of an entire cabinet," he further argued.
The senior counsel also argued for bail for K V Brahmananda Reddy, railway officer and one of the accused in the Vanpic case. "Unlike the other two IAS officials chargesheeted in the Vanpic case, M Samuel and Manmohan Singh, Brahmananda Reddy is working in a faraway state," he said. "When top officials of the Secretariat cannot influence the witnesses, how can Brahmananda do that from a distant state," the counsel wondered.
Meanwhile Y Srilakshmi, another IAS officer who is an accused in the illegal mining case, filed a fresh plea seeking bail on health grounds apart from other reasons like completion of investigation and filing of chargesheets.