Thaindian News

Hyderabad, Nov 4 (IANS) A local court Friday sent industrialist Koneru Prasad to Central Bureau of Investigation (CBI) custody for a week in connection with the Emaar-APIIC township scam.

A magistrate at Nampally Criminal Court remanded the founder chairman and chief mentor of Trimex group to CBI custody till Nov 10. It directed the investigating agency to question the accused in the presence of his lawyer.

The CBI, which arrested Prasad Thursday, sought his custody for 15 days but the court granted this for a week.

The federal agency, in its remand report, told the court that Prasad had knowledge of the involvement of bureaucrats and other accused in the case and that his interrogation was necessary to bring out facts.

Earlier, the CBI officials grilled Prasad at state-run Dilkusha guesthouse, which the agency is using as the camp office.

Stylish Homes Real Estate Limited, floated by Prasad, allegedly siphoned off a lot of money by selling the villas and plots in Emaar Hills Township Project (EHTP) at Gachibowli in Hyderabad.

CBI Joint Director V.V. Lakshminarayana said Prasad showed the price of villas and plots as Rs.5,000 per square yard on paper but sold them for much higher sums.

Two people who purchased villas told the CBI that a major chunk of the money was paid to Prasad in cash.

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.

Stylish Homes, the marketing agent of EHTP, sold about 100 villas and the plots at Rs.25,000 to Rs.50,000 per sq yard. According to the CBI, Prasad cheated and caused huge losses to Andhra Pradesh Industrial Infrastructure Corporation (APIIC), a government agency which built the project in partnership with Dubai-based Emaar Properties.

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

Prasad is the first person to be arrested by CBI since it registered a case on Aug 17 on the directions of the Andhra Pradesh High Court.

The first information report named then APIIC managing director B.P. Acharya, Emaar Properties, EHTP, Emaar MGF and Stylish Homes and unnamed public servants as accused in the case.