Emaar India Ltd, subsidiary of Dubai-based real estate developer Emaar Properties, has cautioned public against dealing with MGF Group, its promoter Shravan Gupta, and associates, in respect of a land parcel in Okhla, Delhi.
This land was valued at nearly Rs 5 billion in 2008 and may be currently valued much higher, the company said in a statement.
Emaar has also issued a public notice to this effect. The public notice elaborates that Emaar has approached the National Company Law Tribunal (NCLT) alleging illegal conduct by Mr Shravan Gupta and MGF Group, causing losses of properties and funds to Emaar India Ltd (previously, Emaar MGF Land Ltd).
“We were informed by credible sources that MGF was likely to deal with the Okhla land parcel. We wanted to caution the public against dealing with MGF Group, SSP Buildcon Private Limited, Shravan Gupta, Shilpa Gupta or any of their associates / related entities or persons. The notice pertains specifically to a land parcel of approximately 4.88 acres in Okhla, Mathura Road, New Delhi. This land was valued at nearly Rs 5 billion in 2008 and may be much higher today," the company said in a statement on January 22.
Emaar India was a joint venture between Dubai-based Emaar and Mr Shravan Gupta’s MGF Developments Ltd. Emaar Properties, one of the world’s leading real estate developers, entered the Indian real estate with one of the largest FDI in the real estate sector in 2005.
Once Emaar took management control of Emaar India, it found several unauthorised related party transactions prior to 2016. After investigating, Emaar proceeded with recourse to the necessary remedies available under Indian law. Emaar has sought to recover over Rs 24 billion and interest from the relevant date of siphoning of funds or properties. The proceedings were filed in November 2019 before the NCLT Delhi, the statement said.
Emaar said in the statement that “they have been informed that Shravan Gupta and his family are since outside India and recently learned from a court order in an unrelated matter that he and his family are likely to take up citizenship of the Commonwealth of Dominica”.
Emaar will continue to pursue its remedies under Indian law. Emaar has faith in the Indian legal system and the judiciary and confident that the legal processes will catch up with MGF and Shravan Gupta, the statement added.
Meanwhile, Emaar India Chief Executive Officer (CEO) Ajay Munot has resigned from the company to pursue his personal interest. Munot became CEO of India business of Dubai-based Emaar Properties in August 2019.
"We confirm that Ajay Munot has resigned from the company to pursue his own personal interests," the company said in a statement. Emaar India will be managed by Hadi Badri, who heads Emaar's international business, until further notice, it added.
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