5 Multi-Crore Real Estate Scams in India

Bangalore: The real estate segment got scams too. Corruption has become an unresolved issue in India that has been spread throughout the country like a deadly plague hindering the country’s growth. We have come across many corruption cases that made headlines and caught our attention because of its multi-crore involvement. Coalgate scam is the most recent followed by 2G scams, Commonwealth games scam and many more. While Adarsh Housing Society Scam is known to be one of the biggest scams in real estate, below are few of India’s land scams.

5) Emaar Properties scam

The alleged scam started back in 2003 when Dubai-based real estate group Emaar Properties merged with the government run Andhra Pradesh Industrial Infrastructure Corporation (APIIC). Under the partnership clause, 75 percent of equity granted to Emaar Properties and the rest percentage to the APIIC. The actual plan was to develop an ultra-luxury township including villas, golf course and a hotel on 535 acres of land in Gachibowli. But in 2006, another Dubai-based infrastructure company, MGF got involved in the partnership and due to which the stake of APIIC reduced to 6.5 percent. However, during this time BP Acharya was serving as the Managing Director of APIIC and allowed the revised terms rather than obtaining clearance from government. CBI suspected that the new partnership helped Emaar-MGF to gain excessive benefit of 2500 crore.

Many top-notch figures including politicians and celebrities had came under CBI scanner for buying villas sold at 5000 per square yard, whereas the actual market value was no less than 60,000 per square yard. This had brought huge loss to the government, with NDTV inputs.