State government to file criminal charges against Emaar Properties for causing it a loss of about Rs 500 crore. These and other recommendations are compiled in its much-awaited report likely to be submitted to the Chief Minister on Saturday.
The APIIC had hired a Delhi-based law firm, Singhania & Partners, to ascertain the exact amount of loss caused on account of Emaar and suggest legal remedies. S&P prepared a 50-page report covering three aspects: One, loss incurred by the state as a result of Emaar transferring development rights to a co-developer (Emaar-MGF); two, option of withdrawing development rights given to Emaar and allot the same to another developer; three, revised revenue-sharing deal between Emaar and APIIC in case the former agrees to make good the loss it had caused.
“The report underscores the grounds on which the government can take criminal action against Emaar and EHTPL officials,” a senior official told Express. Emaar Housing & Township Private Ltd (EHTPL) is a special purpose vehicle floated by APIIC and Emaar Properties to co-develop commercial and residential property in Nanakramguda. Emaar was supposed to execute it along with the APIIC but it has roped in its sister company Emaar-MGF.
So far, EHTPL sold about 136 villas spread across 33 acres in Nanakramguda. Similarly, it sold about 200 flats of a total of 3,000 to be constructed in another 30 acres. According to S&P estimates, APIIC is entitled to a revenue of approximately Rs 500 crore for the property sold so far.
The report also indicated a revised revenue-sharing model between Emaar and APIIC but this will come into play only if Emaar agrees to repay the money it owes to the government.