MGF lodges an FIR against Emaar officials for ‘fraudulent land transfer.’

MGF Developments Ltd has filed an FIR against former joint venture partner Emaar India officials, including Emaar Properties Group CEO Amit Jain.

The FIR charges the appellant with fraud, cheating, criminal breach of trust, and criminal conspiracy in violation of IPC Sections 406, 409, 420, 467, 468, 471, and 120 B.

MGF Developments Ltd and its subsidiary firms have filed an FIR alleging that Emaar employees falsified Board Resolutions of MGF subsidiary companies and issued general power of attorney (GPA) in favour of Emaar in relation to land owned by MGF subsidiaries.

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

According to MGF, the license is now being processed by the DTCP, and once the license is given in respect of such property, prospective buyers of the aforementioned proposed project would undoubtedly suffer. MGF has said that its subsidiary firms would be burdened unduly under RERA regulations for the abovementioned project despite the fact that they have committed no wrongdoing.

Emaar India stated in a statement on the FIR that as a responsible business and a law-abiding firm, it guarantees that it is always in accordance with specified laws of the nation.

“Emaar India is a major real estate company in India, having been in the market for over 15 years. As a responsible corporate citizen and a law-abiding business, we make assured that we are always in accordance with the applicable laws. We have complete confidence in the country’s courts and will comply with the legal procedure as needed,” it stated.

MGF and Emaar have both been involved in legal squabbles. Emaar India accused MGF Group and its Chairman Shravan Gupta of attempting to fraudulently transfer a land parcel in Okhla in January.

Emaar cautioned in a statement against interacting with MGF Group, Gupta, and allies in relation to the land parcel, which was valued at almost Rs 500 crore in 2008 and might be worth considerably more now. Emaar has also made a public announcement to that effect.

In 2005, Emaar Properties joined the Indian real estate industry with a Rs 7,000 crore joint venture with Shravan Gupta-owned and managed MGF Development. The two partners separated in 2016 following a court-ordered demerger process.

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