Court denies bail to accused in Emaar case

December 12th, 2011 - 11:32 pm ICT by IANS  

Hyderabad, Dec 12 (IANS) A special court Monday rejected the bail plea of industrialist Koneru Prasad in the Emaar-APIIC township project case.

A special Central Bureau of Investigation (CBI) court dismissed bail plea of Prasad, a key accused in the case.

Prasad, chairman of Trimex group and also a promoter of the Stylish Homes Real Estate Private Limited, had sought bail on health grounds.

The CBI, however, opposed the bail plea saying the accused, if released, might influence the witnesses and destroy the evidence.

Prasad, who was arrested by CBI on Nov 3, had allegedly collected Rs.138 crore from buyers towards plots developed by Emaar MGF in the township.

The investigating agency said the accused collected the money from buyers but showed only a part of it on paper causing a huge loss to the state-owned Andhra Pradesh Industrial Infrastructure Corporation (APIIC), which built the project in joint venture with Dubai-based Emaar Properties.

APIIC, which had allotted 535 acres of prime land for the project, had 26 percent equity in Emaar Hills Township Project (EHTP), floated to execute the joint venture. However, Emaar and its Indian associates allegedly diluted the equity of APIIC to six percent.

Prasad, whose firm was marketing agent of EHTP, is the first and only accused to be arrested by CBI since it registered a case on Aug 17 on the directions of the Andhra Pradesh High Court.

Known as ‘Dubai’ Prasad for his immense clout in Dubai and other emirates, Prasad has been booked by CBI for cheating, criminal conspiracy, forgery and falsification of accounts. He is also facing charges under the Prevention of Corruption Act.

Meanwhile, the CBI Monday questioned some more buyers of villas and plots in the project to gather evidence against the accused. The investigating agency has already recorded the statements of some buyers including politicians, businessmen and film stars.

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