NEW DELHI/HYDERABAD: The chargesheet filed by the CBI in the Emaar Properties scam says that the company’s subsidiary, Emaar-MGF Land Ltd (EMLL), set up 10 companies in the name of its employees to corner prime villas at throwaway rates while paying a pittance to its joint venture partner, the AP Industrial Infrastructure Corporation (APIIC). As per the agreement between the state corporation and Emaar Properties, dated Jan.29, 2005, over 100 villa plots were to be sold at the prevailing market rate, the responsibility of fixing which was delegated to EMLL, the chargesheet, filed in a Hyderabad court, says. The case relates to the development of a township of fancy villas and a golf course on the western edge of Hyderabad.Emaar Properties is accused of bringing in a developer-subsidiary, EMLL, which proved detrimental to the interests of APIIC and brought down its stake in the project from 49 per cent to 26 per cent and then further to 6.5 per cent.The agency says that EMLL managing director Shravan Gupta instructed his staff to acquire or incorporate 10 companies (seven in Delhi and three in Ernakulam) with the company’s employees as directors and shareholders.Their purpose was to block prime plots in the project which could be sold at premium rates at a later stage, the agency said.The CBI found that funds for setting up these companies were allegedly transferred from Discovery Estates Pvt Ltd in which Gupta and his wife hold 99 per cent stake. These companies blocked 18 plots at Rs 5,000 per sq yard in 2010 while the market rate was Rs 50,000 per sq yard, the agency says.Forensic examination of the laptop of Vijay Raghavan, EMLL’s Head- South, revealed that another 16 villa plots were sold at a much higher rates in 2009-10, the charge sheet says.However, the company recorded a price of only Rs 5,000 per sq yard in its account books while the rest was taken in cash and misappropriated 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 also sold another set of 102 villa plots and misappropriated the amount.The agency found that Rs 48 crore was payable to Emaar Hills Township Pvt Ltd (EHTPL) by EMLL which was to be further shared with APIIC.The agency alleged it was never transferred to the books of accounts of EHTPL. The CBI alleged that EHTPL was a shell company managed by the employees and officials of EMLL with the sole purpose of shutting APIIC out of profits from the project.The CBI alleges, “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 additional land was also disposed of by EMLL in a similar fashion by showing sale proceeds as Rs 5,000 per sq yard while misappropriating the excess amount in cash.The CBI in its charge-sheet alleges that suspended IAS officer B P Acharya, then the managing director of APIIC, entered into a criminal conspiracy with Emaar to benefit the latter. The agency says the outcome of this was to reduce APIIC’s stake in the joint venture from the original 49 per cent to 26 per cent and then to 6.5 per cent.Plots in the township were undervalued for purpose of documentation at the rate of Rs 5,000 per sq yard but were actually sold in the range of Rs 40,000 to Rs 60,000 per sq yard.The difference, amouning to a huge sum, was siphoned off. When contacted, an Emaar MGF spokesperson said, “We are yet to receive a copy of the charge sheet. The matter is sub judice and we cannot comment on it.
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