Emaar accuses former partner MGF, Shravan Gupta of fraudulent transfer of land parcels

MUMBAI: Dubai-based realty developer Emaar Properties’ subsidiary Emaar India has cautioned public against dealing with its erstwhile joint venture partner MGF Group, its promoter Shravan Gupta, and associates, in respect of a land parcel in Okhla, Delhi. Emaar has also issued a public notice to this effect.
The public notice elaborates that Emaar has approached National Company Law Tribunal (NCLT) alleging illegal conduct by Shravan Gupta and MGF Group, causing losses of properties and funds to Emaar India, previously Emaar MGF Land.

“We were informed by credible sources that MGF was likely to deal with the Okhla land parcel. We wanted to caution the public against dealing with MGF Group, SSP Buildcon Private, Shravan Gupta, Shilpa Gupta or any of their associates / related entities or persons. The notice pertains specifically to a land parcel of approximately 4.88 acres in Okhla, Mathura Road, New Delhi. This land was valued at nearly INR 5 billion in 2008 and may be much higher today”, Emaar said in a statement.

Emaar India was a joint venture between Dubai-based Emaar and Shravan Gupta’s MGF Developments. Emaar Properties had entered the Indian real estate with one of the largest Foreign Direct Investment (FDI) in the real estate sector in 2005.

Following Emaar taking management control of Emaar India, it found several unauthorised related party transactions prior to 2016. After investigating, Emaar proceeded with recourse to the necessary remedies available under Indian law.

ET has earlier reported that Emaar has sought to recover over Rs 2,400 crore and interest from the relevant date of alleged siphoning of funds or properties. The proceedings were filed in November 2019 before the NCLT Delhi.

According to Emaar, it has information that Shravan Gupta and his family are outside India and has recently learned from a court order in an unrelated matter that he and his family are likely to take up citizenship of the Commonwealth of Dominica.