‘APIIC given raw deal'

The APIIC will do every thing necessary to recover the revenue due to the government as part of its Memorandum of Understanding with the Emaar Properties, Chairman Shivarama Subramanyam said here on Wednesday.

As per the MoU, APIIC had 26 per cent stake in the development of integrated township, golf course in about 260 acres in Nanakramguda but Emaar Properties in deviation of the six-year old MoU, roped in another company Emaar MGF without the knowledge of the APIIC board or government's consent. The Emaar properties had given 50 per cent of its stake to the Emaar MGF venture.

The legal opinion obtained by the APIIC board also found fault with the Emaar Properties for deviating from the MoU with the APIIC. “We will seek the opinion of the advocate general, and other experts and submit a detailed report to the government in the next board meeting scheduled for last week of August,” he said. The exercise is not to target any individual or has any political motive as is made out to be. But to ensure that the government recovered the revenue due to it from the reputed real estate company with which it entered into an agreement, Mr. Subramanyam said. The Board gathered prima facie evidence in the departmental reviews and came to a conclusion that the APIIC was given a raw deal. The Board would now scrutinise all the documents about the transactions done by Emaar Properties and Emaar MGF.

Emaar Properties which had collected advances from the prospective buyers of villas and other properties had only been paying nominal lease rentals to the APIIC.

Mr. Subramanyam said it was not possible at this stage to estimate the loss of revenue to the government. He also said they did not blame former board Chairman Ambati Rambabu for the violation of MoU. Some decisions apparently had been taken without the consent of the Board. “However if Mr. Rambabu owns up responsibility for the deviation, we have nothing to do with it,” Mr. Subramanyam told .

Asserting that action would be taken against all those who facilitated the breach of agreement, he said the government did not get any revenue in its deal with Emaar Properties.

Emaar Properties in deviation of MoU, roped in another company Emaar MGF: APIIC chief

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