Telangana government takes steps to settle long-standing legal issues with Dubai-based Emaar Properties.
Hyderabad: Chief Minister A. Revanth Reddy on Thursday met the management team of Dubai-based real estate developer Emaar Properties and decided to constitute a committee of legal experts to resolve the ongoing disputes with the Dubai realtor.
The legal experts committee will be in addition to the high-power official committee headed by the Chief Secretary, which was originally set up in 2015 during the previous BRS regime to address these disputes.
The delegation that met the Chief Minister included Emaar founder and managing director Mohammed Alabbar, former UAE ambassador to India Dr Ahmed Al Banna, Emaar Group CEO Amit Jain, and its international affairs Head Mustafa Akram.
Emaar Properties had entered into agreements in 2001 with the then state government of undivided Andhra Pradesh to invest in major projects, including a convention centre, hotel, golf course, and luxury villas in Hyderabad. However, allegations of irregularities in agreements between Emaar and APIIC led to investigations by the CBI and the Enforcement Directorate (ED). These cases are still under judicial review.
After the formation of Telangana in 2014, the BRS government established a five-member Secretary-level Committee in October 2015, led by the Chief Secretary, to resolve disputes related to Emaar projects. The ministry of External Affairs and the Solicitor General of India also provided recommendations on the issue.
Following a briefing from officials and legal complexities involved in the issue, Revanth Reddy instructed officials to thoroughly examine the original Emaar agreement documents, court case details, and instructions from the central government.
The Chief Minister also approved Emaar's proposal to establish a legal agency, with UAE government approval, to analyse disputes and propose amicable solutions. The newly-formed legal committee will coordinate with this agency for further guidance.
The newly formed legal committee will now work towards finding a resolution to the longstanding dispute, aiming to protect state interests while ensuring an amicable settlement with Emaar Properties.
Background
Emaar had originally signed an agreement with the state government in 2001, establishing a special purpose vehicle (SPV), Emaar Hills Township Private Limited, with APIIC holding a 26 per cent stake and the remaining shares owned by Emaar Properties PJSC Dubai.
In 2003, the Telugu Desam government awarded the 535-acre project to Emaar to develop a luxury residential township with villas, flats, and a golf course. However, APIIC’s stake in the project was controversially diluted to six per cent in 2005, leading to a CBI investigation in 2010 that stalled the project.
The state government has since initiated the process to reclaim 200 acres of unused land from Emaar. While apartments were built on 14 acres, they remain incomplete, causing an estimated loss of Rs 300 crore to buyers. The villa plots occupy 100 acres, with nearly 210 buyers reportedly purchasing flats at Rs 1.80 crore each.
