The owners of plots and villas in Emaar project have challenged the memo issued on October 8, 2010, in exercise of power under Section 22-A (1) 9 of the Stamps and Registration Act, stalling the registrations after disputes arose between APIIC and Emaar with regard to sharing a percentage of the sale transactions and also after suspecting that there was a fraud involved in the sale.
The court had granted an interim stay on the memo on July 4, 2011, holding that the execution of sale deeds will not effect the ongoing investigation by the CBI into the Emaar scam. APIIC and the state government had challenged the writs contending that the sale price was unrealistic and the whole issue was under investigation, and there are other cases pending before various courts and fora. They urged that the stay be vacated.
The Judge also pointed out that the question as to whether any fraud or irregularity was committed would be known only after the proceedings initiated by the CBI became final. Till such time, the petitioners or their members who parted with substantial amounts of money cannot be left in suspended animation.
While dismissing APIIC’s plea to vacate the stay, Justice Narasimha Reddy deprecated the attitude of policy-makers who make policies that promote the interests of the rich. Referring to the entry of APIIC into the Emaar venture, the Judge said, “An organisation, which was meant to provide infrastructure for industries has changed its route and became the one to provide infrastructure for the elite.” Coming down heavily on policy-makers, the Judge said the government had evolved policies which “resulted in promotion of real estate as an organised and prominent activity” and observed that “indiscriminate acquisition of huge pieces of land in the names of SEZ/cities/parks and indiscriminate expansion of existing highways have brought about a situation where land has become a commercial commodity rather than a means of sustenance. “Instead of playing its protective role to curb such tendencies, the government has directly or indirectly contributed to this,” the Judge said. Elsewhere, the CBI sought time to respond on a bail plea by Koneru Prasad, who is accused in the Emaar scam and the court posted the matter to Wednesday.