High profile arrests mar Emaar project

M. Somasekhar Updated - November 15, 2017 at 08:54 PM.

The Emaar-MGF luxury villa case continues to haunt the ‘influential' and the rich. The CBI investigation has led to the arrest of the high profile IAS officer, Mr B.P. Acharya, today.

The CBI investigation since August last year into the scam has already led to the arrest of a top executive of Emaar, Mr G. Vijaya Raghava, industrialist Mr Koneru Prasad and Mr Sunil Reddy, a close aide of Mr Y. Jaganmohan Reddy.

The Emaar Hills Township Project (EHTP) touted as a ‘show piece' initiative, landed in trouble last year with allegations that the AP Industrial Infrastructure Corporation showing ‘favouritism' to the company. A report by the Vigilance & Enforcement to the High Court accused officials of Emaar-MGF, APIIC and agents to perpetrating a fraud of Rs 5,000 crore.

The project involves residential villas, apartments and a golf course in Boulder Hills spread over 285 acres in Gachibowli, amidst the IT hub. The key allegation against the project developers is the undervaluation of the land rates for Government records, but sold at high prices to individual buyers. Reports indicated sale at Rs 5,000 a sq. yard against market price of Rs 35,000 to Rs 40,000 a sq. yard.

The CBI has been probing alleged irregularities in land transfer and sale of luxury villas and apartments in the project, which is being jointly developed by the APIIC and the Dubai-based infrastructure major Emaar Properties. It is also focussing on reasons for APIIC diluting its stake in favour of Emaar causing loss to the Government.

The investigations have led to probing the interests of Mr N. Chandrababu Naidu and family; Mr Chiranjeevi and family; Mr Y.S. Jaganmohan Reddy; Mr K.V.P. Ramachandra Rao, a key aide of former CM, Dr Y.S. Rajasekhara Reddy, several industry and political leaders, who are supposed to be owning villas or apartments in the upcoming project.

>soma@thehindu.co.in

Published on January 30, 2012 16:29