The CBI in its chargesheet in the Emaar scam alleged that though the APIIC Senior Projects Manager recommended that the price of the land (given by APIIC to Emaar as its share) should be revised upwards from Rs 29,00,000 to Rs 40,00,000 per acre, in view of the appreciation of the land value, IAS official L.V. Subrahmanyam recommended to the government against this. The CBI said that Mr Subrahmanyam advised the government to retain the price at Rs 29,00,000 as part of a criminal conspiracy. The official said that the project would be doubly jeopardized with its cost increasing and the corresponding reduction in the government equity, casting additional debt burden on the APIIC.
Mr Subrahmanyam (A-10) accepted the price of Rs 35 lakh per acre fixed by the APIIC's Price Fixation Committee in respect of the land at Manikonda Jagir (where the integrated project is located) and endorsed this in the file. He also agreed to recommend that the lease rentals as 2 per cent of gross annual revenues in respect of 235 acres of lease land for development of a Golf Course, contrary to the approval given by state government for a lease rentals at the rate 2 per cent for the initial period of 33 years and 3 per cent for a further 33 years.
This effectively divested the APIIC of its legitimate share in the lease rentals for the remaining period of 33 years at the rate of 3 per cent. He had also pointed out that the fully developed asset would be reverted to the government after 66 years and in view of the urgency, the land may be handed over to the developer, pending signing of the MOU.
Mr Rao had pointed out that there was manifold increase in value for APIIC’s equity and substantial increase into project cost, but failed to comment on revising the cost of land to be handed over by APIIC to the developer on freehold basis, though the APIIC's project wing had recommended to revise the cost to Rs 40,00,000 per acre from the existing Rs 29,00,000 per acre.
The CBI investigation revealed that VIP buyers were allotted villa plots at the rate Rs 5,000 per sq. yd, and they paid by cheques and DDs. In addition, they paid four per cent of the sale consideration towards agency commission in favour of Stylish Holmes.
The chargesheet said, “It is revealed that they did not paid any excess money above the rate of Rs 5,000 per sq. yd. for the villa plots, as most of them are related to Koneru Prasad. Some of the buyers are relatives of VIPs and politicians.
PLOT NO. ALLOTTEE
A11 Lalitha Koduri
A16 Y. Srinivasa Rao
A19 Venkat Malladi
A20 Mukhaari Estates Pvt. Ltd.
A21 Stylish Holmes
A38 Y.S. Chowdary
A42 K. Suneetha
A43 Stylish Holmes
B1 Santosh Kumar Tripathy
B2a GAR Financial Services Pvt. Ltd.
B13 M. Radha & Mr.M.Harshavardhan
B14 T. Bhanumathi Devi
B15 Aakash Estates Pvt. Ltd.
B16 Aakash Estates Pvt. Ltd.
B17 Milano Infrastructure and Projects Pvt. Ltd.
B18 Genex Enterprises
B19 N. Brahmani
B20
B21 Vimala Devi Koneru
B22
B24 Stylish Holmes
B28 Stylish Holmes
B55 Visweswara Rao Kandula
* * *
Plot no VIP buyers Area in Sqyd Amount paid
A45 Haritha Raju 1100 Rs 52,25,000
A46 Galla Padmavathi 1100 Rs 52,25,000
A49 Jyotsna S. Joshi 1300 Rs 61,75,000
A72 K. Raghu Rama Krishna Raju 1487 Rs 74,35,000
A74 K.Bharat 1870 Rs 88,82,500
A75 P.V. Krishna Reddy 2026 Rs 96,23,500
A76 T. Rama Devi 1501 Rs 71,29,750
A77 K. Annapurna 1416 Rs 67,26,000
A78/79 V. Chamundeswaranath 1402 Rs 69,67,461
