In an announcement, Emaar MGF Land Ltd is being accused by the Indian government for violations of the foreign exchange rules over investments of INR 86 billion or US$1.51 billion. Emaar is a joint venture between Emaar Properties PJSC of Dubai and MGF Development Ltd of India.
The property firm is being accused of violations of the foreign direct investment rules under the Foreign Exchange Management Act. The central bank said that overseas funds had purchased agricultural lands using overseas funds. Under the rules, this practice is not allowed and only development projects are allowed to be purchased through overseas funds.
No comment was provided on the matter from the Dubai office of Emaar Properties. According to a government statement, the company had violated the Central Bank's Foreign Direct Investment rules under the Foreign Exchange Management Act.
Emaar MGF Land has been developing homes and offices as well as shops and hotels throughout India since 2005.
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