The hot discussed topic across the state, if there are some researchers working on then would have stated that, EMAAR is top of the list. But Indian memory is short lived and we have a habit of excusing even serious political offenders as time passes and give them another chance. This has been cyclic. The hottest topic must not go past us like any other issue. Hence we thought we shall collect bits from the media sources and assemble the dark side of the case and how the power hoarders have penalized us for innocently voting them to power, do we have a choice?
EMAAR properties, basically from Dubai and its main Indian associate is EMAAR MGF. During the Chandra Babu Naidu era in 2002, when IT flourished, high income group or the elite class started growing at an abundant pace. Middle class was promoted to higher middle class due to abundant jobs to the engineers in the software arena. Then EMAAR approached the government with its ambitious plan, to establish high class living experience. The government convinced with the global giant’s capability signed an understanding in 2002 September with the company. Then the G.O. no. 359 was passed, in accordance the said property will be shared by three utilities. They were 74% for Golf Course and Multi usage projects. The balance 26% would be shared by the EMAAR and APIIC. As per the 2003 accord the APIIC allotted 535 acres to the EMAAR for development of luxury apartments, villas and in turn the shares would be 51% and 49% between the government and the developer.
During the era of the late Chief Minister Y S Rajasekara Reddy, the deal took a different shape and more liberal offers were sanctioned to the EMAAR as it had approached the government that the original deal signed in 2003 where not workable and requested an amendment. In 2005 January the YSR government issued a GO no: 22. As per the GO the deal was shared between three companies were floated for various utilities.
• EMAAR hills and township Pvt Ltd (EHTPL) to which 258.36 acres was allotted. APIIC would be paid a sum of Rs.29 lakhs per acre for providing the land and would share the venture with the company at 26:74 ratio.
• Boulder Hills Leisure Pvt. Ltd. (BHLPL) to which 235 acres of land was leased for Golf course and resort hotels. At this same place another 17 acres were sold to EMAAR.
• Cyber Convention Centre (CCC) was allotted 15.39 acres. Later this land was leased to EMAAR for development.
In turn the EMAAR had transferred its development and GPA powers to EMAAR MGF, this was neither in consultation with APIIC nor with its complete board. The game that started at this stage was well set to reap rich dividends to the conglomerate in multiple ways. Another mediating company Stylish Homes Pvt. Ltd was involved to sell the luxury range of apartments and villas.
The looser was APIIC whose stake had come down to almost 6% due to the various manipulations. The Government agency woke up after the present administration took over and issued notice to the Corporate. The corporate later offered the original equity as spelled in the 2005 accord to the APIIC.
The country’s premier investigating agency CBI has taken over the case, after Jagan uprising started to dominate the state politics. CBI arrested Koneru Prasad of EMAAR MGF and also turned Stylish homes Rangarao as approver. Through this the CBI and the Vigilance departments have gathered enough information of the high heads involved in the irregularities and more to come in the near future. Keep watching this space for live updates. (AarKay)
