The Vigilance and Enforcement Directorate has established that the APIIC management had allotted 535 acres of land to the Emaar Properties by undervaluing the land cost by 16 times.

When the allotment was made, the market rate was Rs.10, 300 per square yard putting the cost of one acre at Rs.4.98 Cr. But, the APIIC had allotted the land to the company at the rate of Rs.29 lakh per acre.

Moreover, the Emaar Properties had transferred the entire project to the Emaar MGF with all the rights with out the knowledge of the APIIC, according to the Vigilance and Enforcement Directorate.

The actual share holding of the APIIC in all the proposed projects was fixed at 26 times but it was subsequently reduced to 5 to 6.5 per cent.

The timeline in the Emaar scandal is as follows.

July 26, 2001: Expression of interest (EoI) invited from bidders for international standard convention centre, a star hotel, golf course and villas at Manikonda near Hyderabad.
September 26, 2001:  Government shortlists three out of the five companies which submitted bids.

January 8, 2002:  The contract goes to Emaar Properties for developing the integrated project.

June 28, 2003:  The Cabinet sub-committee approves the agreement between APIIC and Emaar.

August 19, 2003:  APIIC sings agreement with the Emaar Properties

March 12, 2004: APIIC’s Board of Directors approves the agreement.