Emaar violated rules in Rs 8,600cr investment: Govt

The government on Tuesday accused Emaar MGF Land Ltd , a joint venture between Dubai's Emaar Properties PJSC and India's MGF Development Ltd, of violating foreign exchange rules over investments of Rs 8,600 crore.

June 05, 2013 / 00:34 IST

The government on Tuesday accused Emaar MGF Land Ltd , a joint venture between Dubai's Emaar Properties PJSC and India's MGF Development Ltd, of violating foreign exchange rules over investments of Rs 8,600 crore.

The company was accused of violating the central bank's foreign direct investment rules under the Foreign Exchange Management Act (FEMA) by using overseas funds to buy agricultural land, which was not allowed, instead of for development projects, according to a government statement.

An external spokeswoman for Emaar Properties in Dubai had no immediate comment. Emaar MGF Land has been building homes, offices, shops and hotels in India since 2005.

first published: Jun 4, 2013 07:30 pm

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