Emaar case: Jagan’s aide Ambati appears before CBI

Ambati Rambabu, former Chairman of the A.P. Industrial Infrastructure Corporation comes out of the interrogation centre of CBI, in Hyderabad on Sunday. Photo: P.V. Sivakumar

Former chairman of APIIC and Kadapa MP Y.S. Jaganmohan Reddy’s close aide Ambati Rambabu appeared before the CBI here on Sunday in connection with the alleged irregularities in APIIC-Emaar Properties land deal.

After being asked by the CBI, the YSR Congress leader appeared before the central agency at the Dilkusha Guest House here at around 10 am and his statements were likely to be recorded in the Emaar case, as he was the chairman of Andhra Pradesh Industrial Infrastructure Corporation (APIIC) during 2005 to 2007.

The CBI had registered a case in August last year against Emmar—MGF, its sister concerns and others on allegations that favours were granted to it by the state government officials in the execution of a posh real estate project at Manikonda, here.

The AP High Court had, on August 10 last year, ordered a CBI inquiry into the land allotments made to Emaar by the then Y.S. Rajasekhara Reddy government and dilution of the stake of APIIC in the joint venture with Emaar for the development of the township project.

The CBI has already arrested industrialist and Trimex Group chairman Koneru Rajendra Prasad, who is said to have been instrumental in finalising a deal between APIIC and Emaar.

Prasad, who is also the promoter of Stylish Homes Real Estate Pvt Ltd, is presently under judicial custody and lodged in the Chanchalguda prison here.

Stylish Homes Real Estate Pvt Ltd, one of the marketing agents for Emaar, is accused of undervaluing the rates of the plots and villas for government record, but actually selling it at higher rates causing loss to the state exchequer.

The APIIC had earlier said that the agreement it signed with Emaar Properties in 2005 was violated when Emaar Hills Township Pvt Ltd (EHTPL), the special purpose vehicle created by the developer for execution of the township project, roped in Emaar MGF without a prior written consent of the APIIC.

In its FIR, the CBI had also alleged that B P Acharya, senior IAS officer and former Chairman and Managing Director of APIIC entered into a criminal conspiracy with officials of Emaar Group and unknown public servants to cheat APIIC, to secure a wrongful gain to Emaar.

Later, while speaking to reporters, Ambati Rambabu said he appeared before the CBI as a witness. He contended that the Emaar Properties-APIIC deal was struck in 2003, when TDP Chief N Chandrababu Naidu was the Chief Minister and sought that CBI probe should also focus on that aspect and the deals made.