Emaar Properties' deal with Apiic to develop an integrated project in the South Indian state of Andhra Pradesh is getting murkier, with a regional party demanding a probe into alienation of prime land to Emaar MGF.
The Telugu Desam Party (TDP) leader Gali Muddukrishnama Naidu said the alienation of land and reduction in Apiic's (Andhra Pradesh Industrial Infrastructure Corporation) share was against the norms, according to 'The Hindu' newspaper.
The party has called for a CBI probe and also demanded a central government intervention in the matter. They allege it was done at the behest of the former chief minister of the state and the former Apiic chairman.
Emaar Properties, Dubai, and Apiic entered into an agreement in 2003 to develop an integrated project (comprising a convention centre, a star hotel, an 18-hole golf course and a township including villas) in Andhra Pradesh.
It is alleged that Emaar Hills Township Pvt Ltd (EHTPL) without Apiic's approval transferred 285 acres with all rights to Emaar MGF Ltd in 2006. Apiic apparently has no shareholding in the new company, according to Indian media reports.
Political parties are now up in arms and has asked the state government to resume 535 acres allotted to Emaar Properties and initiate criminal proceedings against its management for illegally transferring 50 per cent share to its business partners MG.
A senior politician has also suggested the government cancel all agreements with Emaar, reports 'The Hindu'.