This Article is From Feb 04, 2012

APIIC deprived of Rs 43.5 crore in township project says CBI

Hyderabad: The Andhra Pradesh Industrial Infrastructure Corporation was deprieved of a legitimate revenue share of Rs 43.5 crore from the Integrated Township Project, developed jointly with Emaar Group at Gachibowli, while Emaar Properties and Emaar Motor and General Finance secured "undue pecuniary gain" of about Rs 167 crore, the Central Bureau of Investigation said yesterday.

The investigating agency, which is probing the alleged irregularities in the Andhra Pradesh Industrial Imfrastructure Corporation-Emaar Properties project, filed a reply to bail petition of suspended senior Indian Administrative officer B P Acharya, a prime accused in the case.

According to Central Bureau of Investigation, Emaar Motor and General Finance Land Limited, a co-developer for the 285-acre integrated township, earned revenue of Rs342.88 crore from sale of villas/plots/apartments from November 2006 to August 2011.

As per the agreement between Emaar Hills Township Private Limited(EHTPL) and Emaar Motor and General Finance Land Limited, former was entitled to a revenue share of Rs 85.72 crore at 25 per cent of the gross revenue of Emaar Motor and General Finance. But Emaar Motor and General Finance did not share any revenue with Emaar Hills Township Private Limited, the Central Bureau of Investigation says in the reply.

 Emaar Hils Township Private Limited, a Special Purpose Vehicle of Andhra Pradseh Industrial Infrastructure Corporation and Emaar Properties Public Joint Stock Company, Dubai, implemented the project.

Further, Rs 102.87 crore collected from villa plot buyers over and above the documented rate were not shown in the accounts of Emaar Hills Township Private Limited, it says.

The revenue share of Rs 188.59 crore (Rs 85.72 crore plus Rs 102.87 crore) should have been accounted for in the books of Emaar Hills Township Private Limited, and the profit should have been divided between Emaar Properties Public Joint Stock Company and Andhra Pradesh Industrial Infrastructure Corporation in the proportion of their equity (Andhra Pradesh Industrial Infrastructure Corporation had 26 per cent stake), Central Bureau of Investigation said.

Andhra Pradesh Industrial Infrastructure Corporation was deprived of legitimate revenue share to the tune of Rs 43.5 crore, while Emaar Properties and Emaar Motor and General Finance obtained undue pecuniary advantage to the tune of Rs 167.29 crore, the reply stated.

 
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