TELANGANA POLL RESULTS PUT A NEW DAMPER ON REAL ESTATE IN HYDERABAD

TRS and BJP swept the by-polls and the people's mandate is clear - "We want a separate Telangana State". In the short term, real estate prices will be affected negatively in Hyderabad. People who already put some money down on apartments have canceled and taken their money back.

Legal Action Being Initiated Against EMAAR on Boulder Hills

July 7th, 2010 - Deccan Chronicle
http://www.deccanchronicle.com/hyderabad/cmo-seeks-info-emaar-deal-817

CMO seeks info on Emaar deal

The government has asked the AP Industrial Infrastructure Corporation (APIIC) to protect the interests of the state at any cost.

Reacting to a news item published in these columns, the Chief Minister’s Office (CMO) on Tuesday sought details from the APIIC on the changes made in the agreements by the Emaar Hills Township Pvt. Ltd. (EHTPL) and its impact on the APIIC’s revenues. “We have asked for a detailed note on the violations,” sources in the CMO said.

The major industries minister, Mr Kanna Lakshminarayana, also convened a meeting with the officials of the industries and APIIC and discussed the issue.

Sources said the officials briefed the minister about EHTPL entering into an agreement with Emaar MGF without informing the APIIC.

The officials also explained about the legal action being initiated against Emaar. The minister asked them to take all steps to protect the corporation’s interests.

On Monday, it was reported that APIIC accused its partner Emaar of defrauding the state in the Emaar integrated township and golf course project at Manikonda.

More trouble for EMAAR Boulder Hills - Beware!!!

The following is from Deccan Chronicle, July 6th 2010:
http://www.deccanchronicle.com/emaar-township-gets-red-card-apiic-434
Emaar township gets red card from APIIC

The prestigious Emaar integrated township and golf course project at Manikonda has run into trouble with the co-promoter, Andhra Pradesh Industrial Infrastructure Corporation (APIIC), accusing its partner Emaar of defrauding the state.

APIIC has hurled the allegation after Emaar Hills Townships Pvt Ltd, the joint venture company, entered into a development agreement-cum-general power of attorney with Emaar MGF without its approval.

With this agreement, the majority of sale proceedings will go to the Emaar MGF and not the JV which developed the project.

Sources said APIIC served a legal notice on its partner for violating the rules and conditions of the collaboration agreement.

It also urged the government to prohibit registration of any transaction pertaining to the township.

“The agreement with Emaar MGF is against financial interests of the state and APIIC since it purports to transfer huge share of profits by way of revenue share to Emaar MGF,” said the APIIC.

APIIC added that the agreement with Emaar MGF was nothing but a sham device for “siphoning of funds” out of township project and to deprive the shareholders, particularly the corporation, its due share in profits.