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MGF files FIR against Emaar officials over ‘fraudulent transfer’ of land, Real Estate News, ET RealEstate

MGF files FIR against Emaar officials over 'fraudulent transfer' of land, Real Estate News, ET RealEstate
NEW DELHI: MGF Developments Ltd has filed an FIR against officials of its erstwhile joint venture partner Emaar India, including Emaar Properties Group CEO, Amit Jain.

The FIR alleges offences of fraud, cheating, criminal breach of trust, and criminal conspiracy under the provisions of Sections 406, 409, 420, 467, 468, 471, and 120 B of the IPC.

MGF Developments Ltd, with its subsidiary companies, have complained in the FIR that Emaar officials, fraudulently and unauthorisedly, forged Board Resolutions of MGF subsidiary companies and executed general power of attorney (GPA) in favour of Emaar in respect of land owned by the subsidiaries of MGF.

As per the allegations, Emaar, on the basis of fraudulent GPA, entered into collaboration agreement in respect of the said land with a local builder of Gurugram, who thereupon has applied for license for development of affordable group housing in Sector 81, Gurugram including the said land of MGF subsidiaries.

As per MGF, the license is in the process before the DTCP and once the license is issued in respect of such land, the prospective buyers of the said proposed project are bound to suffer. MGF has said that its subsidiary companies, for no wrong done on their part, shall unnecessarily be fastened under the provisions of RERA for the said project.

In a statement on the FIR, Emaar India said that as a responsible corporate and a law abiding company, it ensures that it is always in compliance with prescribed laws of the land.

“Emaar India is one among the leading realty companies with a presence of over 15 years in Indian realty sector. As a responsible corporate and a law abiding company, we ensure that we are always in compliance with prescribed laws of the land. We have full faith in the country’s judiciary and will cooperate with the required legal process,” it said.

Both MGF and Emaar have been fighting legal tussles.

In January, Emaar India accused MGF Group and its Chairman Shravan Gupta of trying to illegally transfer a land parcel in Okhla.

In a statement, Emaar had cautioned against dealing with MGF Group, Gupta and associates in respect of the land parcel which was valued at nearly Rs 500 crore in 2008 and may be valued much higher now. Emaar had also issued a public notice to this effect.

Emaar Properties, entered the Indian real estate market by investing about Rs 7,000 crores in a joint venture with Shravan Gupta-owned and controlled MGF Development in 2005. The two partners parted way in 2016 through a demerger process by way of court of law.

Emaar has also sought compensation of Rs 2,400 crore and a detailed investigation from the NCLT into the alleged fraudulent and illegal acts of Gupta, Shilpa Gupta, MGF and associates in breach of fiduciary responsibility and trust imposed by the Dubai-based realty giant in the joint venture Emaar MGF Ltd. Emaar has also sought a bank guarantee of minimum Rs 2,400 crore to secure its losses.


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Written by Realty Beat

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