Hyderabad, February 10: The ongoing APIIC-Emaar Properties row is reaching a crescendo. Dismissing reports that the state government and APIIC are divided over the issue pertaining to the controversial Emaar Hills Township Project Ltd (EHTPL), major industries minister J Geeta Reddy said it’s up to the board of APIIC to either go for an arbitration with Emaar or proceed criminal charges against the developer.
“It was proven that there have been deviations while executing the project. There are no two ways about it. The government was not involved in any of the matters earlier and will have no say in the decision-making process now. The board of APIIC will take a final call next week,” Geeta Reddy told Express.
Stating that the chief minister N Kiran Kumar Reddy during a review meeting two weeks ago had categorically said APIIC will have to evaluate the matter and settle the issue, she said, “We will have to wait and see what implications APIIC’s decision will have on the industrial climate.”
APIIC on the other hand said it was against the proposal putforth by Emaar Properties offering 26 per cent of the saleable land in EHTPL. Sivarama Subramanyam, chairman, APIIC maintained that Emaar’s proposal was not beneficial for the state and that it would continue to incur losses. “Our contention is not about taking possession of the land. APIIC’s stake in the SPV has reduced from 26 per cent to about 6 per cent,” he explained. According to APIIC, deviations in shareholding structure by roping in a co-developer — Emaar MGF — caused a loss of approximately `800 cr to the state.
A recent report submitted by Vigilance & Enforcement wing pegged the losses upwards `1,400 crore. As per the current market value, 26 percent of the 285 acres saleable land will fetch APIIC a little over `1,400 cr. Sources said APIIC can subsequently sell the land and rope in another developer for this property.
When contacted Sam Bob, Principal Secretary, Department of Industries & Commerce, declined comment. EHTPL is a special purpose vehicle floated by APIIC and Emaar Properties to co-develop commercial and residential property in Nanakramguda. Emaar was supposed to execute it along with the APIIC but it has roped in its parent company Emaar-MGF. So far, EHTPL sold about 136 villas spread across 33 acres in Nanakramguda. Similarly, it sold about 200 flats of a total of 3,000 to be constructed in another 30 acres.
–Agencies