Trouble Starts For Another Realtor As Emaar Gets NCLT Notice
A week after the realtor received a show-cause notice from the National Company Law Tribunal (NCLT), the Enforcement Directorate has seized assets of former Emaar MGF managing director Shravan Gupta, worth Rs 10.28 crore, under the Foreign Exchange Management Act (FEMA). The former managing director had $ 15.40 million in his bank account maintained with HSBC in Switzerland.
Earlier, the NCLT has given the developer time till December 20 to respond to the show-cause notice after a petition was filed with the tribunal related to Emaar’s project The Views in Sector 105, Mohali. The project, which was to be delivered in 2012, has not been completed yet.
It was in 2005 that Emaar Properties had entered the Indian real estate market in partnership with India's MGF group, investing Rs 8,500 crore through the joint venture Emaar MGF Land. However, the joint venture ended in July 2018.
Earlier this year, Emaar India had reported net loss of Rs 230 crore in the first six months of current financial year. According to the regulatory filing, the company’s debt stood at Rs 5,707 crore as of September 2018. In the last financial year, the net loss stood at Rs 724 crore while the total income was Rs 1,363 crore.
After the demerger was announced from MGF Group in 2016, Emaar India has been focusing on completing its existing projects and ramped up construction work at its various projects in Gurgaon, Jaipur, Lucknow, Mohali and Chennai. The company has also secured fund from banks and NBFCs to complete 10,000 units by December 2019. In past two years, Emaar India has completed more than 5,000 units and has 4,500 acres of developable land bank across the country.