NEW DELHI: A Delhi court has dismissed a revision petition filed by MGF Development Ltd against the order of a Chief Metropolitan Magistrate (CMM) court involving Emaar India and MGF chairman Shravan Gupta.
The CMM court had directed to file a First Information Report (FIR) against MGF and other accused. While dismissing the petition, ASJ Dharmender Rana said that Rs 180 crore seemed to have exchanged hands without any apparent quid pro quo for the said transaction, and that the spectre of money laundering and tax evasion should be addressed.
The company had filed a revision petition against a CMM order of April 16 where the court had directed the police to register an FIR against MGF and the other accused. As per the complaint, MGF Development induced Emaar India to enter a joint development agreement with entities connected to the accused without disclosing their relationship with them.
Emaar later became aware of the fraudulent transactions of Gupta with Emaar India and other shell companies. It was discovered that a large-scale fraud was perpetrated by the alleged companies and Gupta is alleged to have fraudulently acted as a nominee of Emaar Properties in two projects and siphoned off Rs 37,34,00,000 via a joint development agreement for Palm Hills Projects through Nanny Infrastructure Pvt. Ltd., and siphoned off Rs 142,68,00,000 through joint development agreement for Imperial Garden Housing Project with Saum Infra Pvt. Ltd.
The court stated that considering the intricate maze of account books, shell companies, and clandestine route of payments, a detailed and thorough probe in the instant matter seemed desirable. The court directed the concerned SHO to ensure a thorough probe, and report the matter to Income Tax Authorities and Enforcement Directorate.