The Economic Offences Wing (EOW) of Gurgaon police has initiated an investigation into a case lodged by MGF against Emaar India, the local subsidiary of Dubai’s renowned Emaar Properties, and the prominent international property consultant JLL India, as indicated by a statement from a senior police official.
Acting upon the directive of a Gurgaon court, local law enforcement has officially commenced proceedings against both entities, focusing on serious allegations that include undervaluation of land and various forms of fraudulent activity. The genesis of the case can be traced back to 2019, where it is alleged that Emaar Properties, in collusion with JLL, engaged in manipulative practices regarding independent valuation reports. The purported aim was to deliberately decrease the assessed value of MGF’s land while concurrently inflating the claimed value on behalf of Emaar.
According to court documents, the modus operandi involved Emaar and JLL collaborating to produce valuation reports within an astonishingly brief 72-hour window. These reports allegedly misrepresented the true value of MGF’s assets, resulting in an unjust enrichment scenario for Emaar. MGF contends that Emaar, along with JLL, not only misled them into believing the legitimacy of the demerged assets but also presented false claims and asset valuations.
Emaar Properties, which made a substantial foray into India in 2005 with a noteworthy foreign direct investment, amounting to approximately Rs 8,500 crore through its joint venture, Emaar MGF Land, vehemently denies any wrongdoing. The company underscores its commitment to conducting business in compliance with the highest ethical and legal standards.
In response to these accusations, Emaar has counterclaimed, accusing MGF of attempting to harass the company through unfounded allegations. The joint venture between Emaar and MGF concluded in 2016, but subsequent disputes and allegations of fraud in joint venture agreements and land transactions have persisted. The matter is currently under scrutiny by the National Company Law Tribunal, where Emaar and MGF jointly lodged a petition seeking both an investigation and compensation totaling Rs 2,400 crore.
While Emaar steadfastly maintains its adherence to the law, MGF remains resolute in its allegations. JLL India, implicated in the case, asserts its commitment to maintaining the highest ethical standards in its business practices and states that they have yet to receive official notification from authorities regarding the ongoing investigation.