Hyderabad, August 15: A VIRTUAL who’s- who of Andhra Pradesh glitterati have lost some of their shine after being named in a scam involving money laundering, flight of capital and tax evasion involving the India subsidiary of a Dubai real estate major.
These prominent personalities — leaders in the fields of cinema, politics, sports, bureaucracy and industry — bought villas and plots in the Emaar Boulder Hills residential township project, allegedly at hefty concessions, and caused a ` 4,310- crore loss to the state exchequer.
While the Central Bureau of Investigation ( CBI) is reportedly set to file a criminal case against Emaar MGF next week, the celebrities who bought the plots and villas are in trouble with the Enforcement Directorate ( ED).
Sources said a special ED team from New Delhi conducted searches at the Emaar- MGF office in Hyderabad on Saturday and confiscated the sales documents pertaining the villas and plots sold in the Emaar Boulder Hills township, on suspicion of tax and stamp duty evasion.
Some of the biggies on the client list — a copy of which is available with M AIL T ODAY — are Kotagiri Suneetha ( the wife of Rajya Sabha MP KVP Ramachandra Rao, who was a close aide of former chief minister Y. S. Rajasekhara Reddy); former PCC president D. Srinivas; Y. S. Vidya Reddy ( the wife of YSR’s younger brother Y. S. Sudheekar Reddy); Nara Brahmani ( daughter- in- law of TDP chief N. Chandrababu Naidu); Muppavarapu Radha ( daughter- in- law of senior BJP leader M. Venkaiah Naidu); Galla Padmavathi ( daughter- inlaw of state minister Galla Aruna Kumari); Dr J. Geetha Reddy ( now a minister); Kasu Prasada Reddy ( famous doctor and son of former CM Kasu Brahmananda Reddy); G Manjula ( daughter of yesteryears Telugu film hero Krishna); film actors G. Mahesh Babu and Namrata Shirodkar; V. Chamundeeshwarinath ( former Ranji cricketer and Indian cricket team manager); Ram Charan Teja movie actor and the son of hero- turned- politician Chiranjeevi) and Swapna Chalasani ( daughter Telugu film producer C. Ashwini Dutt).
Several other persons, linked directly or indirectly the big names, are believed to have got benami plots. Also, a number of plots have been registered the names of private business enterprises and industrialists, including Y. Harishchandra Prasad and I. Shyam Prasad Reddy.
The state vigilance and enforcement ( V& E) department, which had conducted an investigation into the Emaar- MGF project in Hyderabad, recently submitted its report to the high court.
Quoting the report, sources said the private company sold 134 villa plots between 2006 and 2008 at the rate of ` 5,000 per square yard to these highprofile individuals and their relatives.
It is being considered a throwaway price” since the Boulder Hills project is in the prime locality of Nanakramguda bang opposite the Indian School of Business. The market in the locality in 2006- 2008 at least ` 30,000- ` 40,000 per square yard, including the development charges.
The V& E department’s investigation is learnt to have revealed the plots were actually sold ` 45,000 per square yard but, record, the sale price was shown as ` 5,000 per square yard.
The balance amount was reportedly collected in cash.
The scam first came to light in November 2010, when the V& E department probed the sale of plots to various people and firms through Emaar Hills Township Private Limited through Emaar- MGF, violation of Emaar Properties’ original agreement with the Andhra Pradesh Industrial Infrastructure Corporation ( APIIC).
The probe examined allegations sale of plots at a cheaper rate, much less than the market value, thereby causing huge loss to the state exchequer.
submitted its report to the Andhra Pradesh High Court, which was hearing a public interest litigation petition on the scandal, in January 2011.
On July 12, the high court ordered the CBI to conduct a preliminary investigation into the Emaar scam and submit its report within two weeks. Subsequently, it ordered for a CBI inquiry. During the investigation, the V&E authorities seized the list of 134 persons and firms who bought plots for construction of villas in the Emaar Boulder Hills residential township. The list is now being investigated by the CBI and the Enforcement Directorate. When contacted, former PCC president D. Srinivas admitted that he had indeed purchased a plot in the Emaar Township. “Yes, I own a plot in the township. There is nothing to hide and I have even declared it in my election affidavit,” he told MAIL TODAY. He, however, refused to talk about how he got the plot. “I have nothing more to say about it. I am sorry,” he said. Emaar-MGF officials also refused to comment on the list of those who bought the plots and the issue of undervaluation of the plots. “We can’t make any comment now, as the issue is subjudice. We have submitted our explanation to the court in our counter affidavit,” an Emaar-MGF spokesman from New Delhi said. Meanwhile, the ED has launched a full-fledged investigation into the allegations of money laundering, flight of capital, and tax evasion by the Dubai-based firm. The ED officials also seized documents from APIIC’s offices. APIIC was a partner in the project. Sources said the directorate would track Emaar-MGF’s money trail through nations like Singapore, Mauritius and UAE to ascertain whether there was any flight of tax-evaded capital from the Hyderabad project Emaar- MGF office in Hyderabad on Saturday and confiscated the sales documents pertaining the villas and plots sold in the Emaar Boulder Hills township, on suspicion of tax and stamp duty evasion.
Thanks to Mailtoday.in