FIR filed against EMAAR over fraud

Gurugram, November 25

On a Gurugram court’s direction, the police have booked UAE-based realtor company EMAAR Properties PJSC, its Indian subsidiary EMAAR India and 13 others for allegedly cheating its former business partner MGF through undervaluation of land and other offences.

The police said allegedly the accused had been preparing fabricated valuation reports with respect to demerged assets and causing wrongful loss to the complainant. The FIR was registered on Monday at the Sector 29 police station.

UAE-based realtor refutes allegations

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• EMAAR India, in a statement, denied any association of criminality with this issue and alleged that it appears to be nothing but another attempt by MGF to further harass EMAAR and its employees
• Following an order by Chief Judicial Magistrate Ramesh Chander, the FIR was registered on November 20 against EMAAR Properties PJSC and its Indian subsidiary, Emaar India Ltd, its director Bharat Bhushan Garg and others, the police said

According to the complaint filed by Saurabh Singh on behalf of MGF Development Limited, the UAE-based realtor allegedly came up with the valuation of lands at low prices when the adjacent lands were being sold in the market at much higher prices, exploited the warranty indemnity agreement (WIA) and litigation indemnity agreement (LIA) and committed serious cognisable offences for getting wrongful gain for themselves and wrongful loss to the complainant.

According to the complaint, the land in sectors 63, 74A, 76, 81, 85 and 90 in Gurugram was allegedly grossly undervalued by Jones Lang Laselle (JLL), an independent valuer, at the behest of EMAAR, and its officers by creating forged and false valuation reports to cause wrongful loss to the complainant.

The complainant further said that detailed investigation was required into the aspect of how the accused came up with the valuation of the lands at low prices when the adjacent lands were being sold in the market at much higher prices.

Following order of the court of CJM Ramesh Chander on November 18, an FIR was registered on November 20 against EMAAR Properties PJSC and its Indian subsidiary, Emaar India Ltd, its director Bharat Bhushan Garg and others.

The FIR was registered under Sections 406 (criminal breach of trust), 418 (cheating with knowledge), 420 (cheating and dishonesty), 467 (forgery of valuable security), 468 (forgery for purpose of cheating), 471 (using forged document), 120-B (criminal conspiracy), 506 (criminal intimidation) of the IPC at the Sector 29 police station.

In a press statement of EMAAR India said we strongly deny any association of criminality with this issue. As a responsible corporate entity, EMAAR group had been acting in accordance with the law and will continue to uphold the highest ethical standards of business conduct.

“MGF has approached the authorities twice before with EOW Gurgaon and Delhi and both the agencies have found no criminality or merit in the allegations of MGF. While the matter is sub-judice, this appears to be nothing but another attempt by MGF to further harass EMAAR and its employees,” read the statement.