Emaar and MGF are being investigated for money laundering in connection with a license obtained from the Department of Town and Country Planning (DTCP) for residential plotted colonies in Sectors 65 and 66 in Gurgaon, said the spokesperson. According to the spokesperson, ED initiated the investigation based on a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI) under various sections of the Indian Penal Code (IPC) and Prevention of Corruption Act against Bhupinder Singh Hooda, the Then chief minister of Haryana, Trilok Chand Gupta, then director, DTCP, Emaar, MGF Land Ltd, and 14 other coloniser companies.

“The case involves cheating various landowners, the public at large, and the state of Haryana/HUDA, by getting issued notification under section 4 of the Land Acquisition Act, 1894 (LA Act) and subsequently under section 6 of LA Act for the acquisition of lands of respective landowners which compelled landowners to sell their land to the coloniser companies at a lower price than the prevailing price before the notification under Section 4 of LA Act,” the spokesperson alleged.

“They also fraudulently and dishonestly obtained Letter of Intents (LOIs)/licenses on the notified land, causing loss to the respective landowners, the public at large, and the state of Haryana/HUDA, while wrongfully gaining for themselves,” he alleged.

“On June 2, 2009, the Haryana government had issued a notification under section 4 of Land Acquisition Act 1894 on 1417.07 acres of land comprising Sectors 58 to 63 and 65 to 67 of Gurugram. Subsequently, notification under Section 6 was imposed on approximately 850.10 acres of land out of 1417.07 acres of land on May 31, 2010. During the period from June 2, 2009, to May 31, 2010, nearly 600 acres of land was released in patches. from acquisition proceedings by the Haryana government for grant of LOIs/Licenses,” the spokesperson said.

“ED investigation revealed that Emaar and MGF had executed 6 ante-dated development agreements with farmers for land measuring 27.306 acres claiming that the said development agreements were executed in April 2009 but in reality, they were executed in March 2010. The investigation further revealed that the so-called collaboration agreements were ante-dated and fabricated and wrongly shown to have been entered into before the notification u/s 4 was issued so as to avoid any complications in getting the license from the DTCP. Emaar and MGF generated proceeds of crime in the form of license on land measuring 25.887 acres having a present value of Rs 1229.17 crore,” the spokesperson said.

According to the spokesperson, the ED investigation also revealed that the acquisition of land for HUDA was “never the real intent”. “It was only a scheme so that farmers who may or may not have sold their lands to builders otherwise, were forced to give it to builders under the disguise of one or the other agreement due to impending fear of acquisition proceedings.”

Later on, M/s EMAAR MGF Land Limited was split into M/s EMAAR India Limited and M/s MGF Developments Limited having 60.11% and 39.89% share in combined properties. So, the immovable properties to the extent of Rs 501.13 crore in respect of EMAAR India Ltd. (60.11% of the remaining PoC) and Rs 332.69 crore in respect of M/s MGF Developments Ltd. (39.89% of the remaining PoC) has been provisionally attached,” the spokesperson added.