New Delhi: An Indian company that is partnering with the Trump Organisation on an office tower project has been accused of running an elaborate real estate swindle that cheated investors out of nearly $150 million, according to complaints filed with Indian authorities.
Ramesh Sanka, the former CEO of the real estate firm IREO, said in the documents obtained by The Associated Press that he saw “various acts of cheating, fraud and misappropriation of money” at his onetime employer that created “huge wrongful gains” for the company’s managing director and his associates.
The documents make no mention of the Trump Organisation, and focus largely on two real estate deals that began years before the organization signed a 2016 agreement with IREO to partner on an office tower in Gurugram, outside New Delhi.
Mr Sanka quit the company in late 2016 “because I was increasingly uncomfortable with the way in which IREO’s business was being conducted,” according to a police complaint he filed in late February in Gurgram.
In a statement at the time, Donald Trump Jr. said, “IREO is truly a fantastic group and we are looking forward to pushing the boundaries together to create what will soon be one of the most exciting and sought-after commercial towers in India.”
The Trump Organisation has licensing agreements with all its Indian business partners, who build the properties and acquire the Trump name in exchange for a fee.
The Trump Organisation did not immediately respond to requests for comment from the AP.
Mr Sanka’s accusations were first reported by The Washington Post. His statements form the basis for an Indian police complaint filed by two large international investors, the Children’s Investment Fund Foundation, a philanthropy founded by British billionaire Chris Hohn, and New York-based Axon partners.
The complaint accuses Lalit Goyal, IREO’s MD, of being at the heart of the alleged fraud, with Mr Sanka’s statement saying he “was the final decision maker on all matters” at IREO.
