Emaar MGF slapped with Rs 8,600 crore penalty notice by ED
The FDI scheme of RBI has given a facility to Indian companies to receive funds from outside the country for a number of business activities including for construction development projects
Jun 05, 2013
Source : The Economic Times


DELHI: The enforcement directorate (ED) has slapped a show-cause notice on Emaar MGF Land, a joint venture between Dubai's Emaar Properties and India's MGF Development, for violation of the Foreign Exchange Management Act to the tune of 8,600 crore.


In an investigation under FEMA, the government department noticed that funds were received by this company and four of its subsidiaries from Dubai, Cyprus, Mauritius and other foreign countries under the foreign direct investment scheme of the Reserve Bank of India since April 2005.


The FDI scheme of RBI has given a facility to Indian companies under the automatic route to receive funds from outside the country for a number of business activities including for construction development projects.


In this facility, the company, Emaar MGF Land Ltd and its subsidiaries, had to disclose the purpose for which foreign direct investment was received, from within the list of permitted activities by the RBI.


While this company and its subsidiaries disclosed the use of foreign direct investment in construction development projects, they later utilised the overseas funds in the purchase of agricultural land in India.


The company has "thus utilised the overseas funds in the business neither disclosed to RBI nor permitted in the FDI scheme of RBI," said a statement by the directorate of enforcement.


Investigation under FEMA, it said, has revealed that foreign investments received by the companies were utilised in the purchase of agricultural land through various methods either directly or through other associated companies by diverting overseas funds to them.


The directorate of enforcement has found Emaar MGF Land Ltd and its four subsidiaries in contravention of section 6(3)(b) of FEMA 99 for the total amount of 8,600 crore and a show cause notice has been issued under FEMA.


A spokesman for Emaar MGF said: "We have not received any communication from government authorities and hence we are not in a position to comment."


Latest Realty News

Kalinga Sena demands enquiry on Utkal Builders
Jun 05, 2013
Bhubaneswar: Kalinga Sena supremo Hemant Rath at a Press conference here on Tuesday alleged that the Kolkata-based Rose Valley company, which has also duped lakhs of Odia people of crores of rupees, has invested nearly Rs 50 crore in the Bhubaneswar-based real estate firm Utkal Builders.
Govt continues blatant cover-up in chit fund scams: Niranjan
Jun 05, 2013
BHUBANESWAR: Calling the response of the Naveen Patnaik Government to his continued plea to expose the chit fund scam as lackadaisical, former PCC president Niranjan Patnaik has reiterated his demand for an SIT probe under a High Court judge and constituting a corpus fund.
Minister Acharya has links with Seashore: Samata Kranti
Jun 05, 2013
BHUBANESWAR: The newly-floated Samata Kranti Dal (SKD) on Tuesday alleged that Finance Minister Prasanna Acharya has links with Seashore company, which has duped common people of crores of rupees, and demanded his removal from the Cabinet.
Financial results for quarter and year end 31st Mar 2013
Jun 05, 2013
GURGAON: Unitech, India’s leading business group involved in large-scale integrated real-estate development and infrastructure projects, today announced its consolidated financial results for the Quarter and Year ended 31st March 2013.
Emaar MGF Land violated rules in $1.5 bn investments
Jun 05, 2013
DELHI: The government accused Dubai-backed real estate developer Emaar MGF Land Ltd on Tuesday of violating foreign exchange rules with investments worth 86 billion rupees ($1.51 billion) over the past eight years.
Realtors welcome real estate regulatory bill
Jun 05, 2013
DELHI: Hailing the Cabinet's approval of real estate regulatory bill, realtors' body NAREDCO today said the proposed law will bring transparency in the sector, while helping home buyers in redressal of their grievances.
Sea-facing Mumbai duplex goes for Rs 1.18L/sq ft
Jun 05, 2013
MUMBAI: The city's property market may be in a slump but that has not deterred another staggering realty transaction from taking place.
Realty portal Housing.co.in raises $2.5 mn from Nexus Venture Partners
Jun 05, 2013
DELHI: Realty portal Housing.co.in, started by a group of IIT Bombay students, today said it has raised $2.5 million of funding from Nexus Venture Partners.
Union Cabinet approves regulator for real estate, lays down norms to help home buyers
Jun 05, 2013
DELHI: The Union Cabinet on Tuesday cleared a legislation to set up a long-pending real estate regulator aiming to protect home buyers from unscrupulous developers and builders.
Delhi NCR sees 39% decline in residential unit launches: Cushman & Wakefield
Jun 05, 2013
DELHI: According to the latest quarterly reports, global real estate consultancy, Cushman & Wakefield (C&W), the National Capital Region (NCR) witnessed the launch of approximately 7,600 units, a decline of 39% compared to the previous quarter.

Latest Realty News Of State

Realty Talk's