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 trial court had directed to file a First Information Report (FIR) against MGF and other accused persons.
While dismissing the petition, Additional Sessions Judge Dharmender Rana said that evidently Rs 180 crore seems to have exchanged hands without any apparent quid pro quo for the said transaction. The spectre of money laundering and tax evasion also needs to be addressed.
The company had filed a revision petition against a court order of April 16 in which the court had directed the police to register an FIR against MGF and other accused.
The case pertains to a complaint filed by Emaar India Ltd against MGF Development Ltd, Shravan Gupta and 11 others. As per the complaint, MGF Development induced Emaar India to enter into a joint development agreement with entities related / connected to the accused persons without disclosing their relationship with them.
Emaar later became aware of the fraudulent transactions of Gupta with Emaar India on one hand and other shell companies on the other hand.
It was discovered that a large-scale fraud was perpetrated by the alleged companies and Gupta is alleged to have fraudulently acted as nominee of Emaar Properties in two projects and siphoned off Rs 37,34,00,000 by virtue of 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 voluminous account books and a web of shell companies and clandestine route of payments, a detailed and thorough probe in the instant matter seems desirable.