Notwithstanding the explanation released to the media by Emaar MGF Land Ltd., that the A.P. Industrial Infrastructure Corporation (APIIC) stake of 26 per cent is intact in the integrated project, the corporation is questioning the locus standi of Emaar MGF in the first place.
Besides issuing a legal notice to Emaar Hills Township Pvt. Ltd (EHTPL), APIIC Managing Director B.R. Meena has requested the Stamps and Registrations Department not to proceed with registration of plots until there is clarity about the transactions, sale of plots for villas and revenue earned.
The APIIC said that the collaborative agreement it signed with Emaar Properties in 2005 was violated when EHTPL, the special purpose vehicle created by the developer for execution of the township project, roped in Emaar MGF without the prior written consent of the APIIC.
The contention of Mr. Meena is that under the collaborative agreement, the joint venture companies cannot enter into any arrangement with any party without the prior written consent of APIIC.
In clear violation of the agreement, Emaar Hills Township Pvt. Ltd had transferred 285 acres of land together with all rights including that of developing, marketing, branding and revenue accrual to Emaar MGF.
With the original developer having literally relinquished its rights, the APIIC was not given any access by the Emaar MGF to monitor the project nor did it maintain any transparency in its transactions. “We did not know who we should deal with,” Mr. Meena told The Hindu here on Saturday.
The APIIC is now determined to ensure its 26 per cent share remained not only in letter but also in spirit.
Mr. Meena said an examination of all the relevant records showed that the developer never approached APIIC formally for in-principle approval before signing the development agreement with Emaar MGF.
He dismissed Emaar's argument that its action in roping in a co-developer was in tune with the agreement. The arrangement between EHTPL and Emaar MGF was unilateral, illegal and not binding on APIIC, he asserted.
A legal notice was sent to EHTPL on June 17 for failing to keep APIIC posted of the project development, land transactions, revenue accrued, list of purchasers and vacancy positions. EHTPL's reply is under legal examination, he said.
“Our intention is not to stall the project but to ensure that the APIIC is not deprived of its due share because of internal arrangement between EHTPL and MGF,” Mr. Meena added.