MD Shravan Gupta allegedly gave "instructions" to acquire or incorporate companies with his company's employees as "directors and shareholders".
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 BP Acharya and other bureaucrats are also accused of allegedly hatching conspiracy to cheat the exchequer of Rs43.50 crore while Emaar MGF Land Ltd and Dubai-based Emaar Properties PJSC minted Rs167.29 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% shares.
These companies allegedly blocked 18 plots at a meagre Rs5000 per square yards in the year 2010 while the market rates were Rs50,000 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 Rs5,000 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 Rs48 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 Rs5000 per square yard while misappropriating the excess amount in cash.
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