Emaar MGF Land violated rules says India
New Delhi, June 4, 2013
The Indian government on Tuesday accused Emaar MGF Land, a joint venture between Dubai's Emaar Properties and India's MGF Development, of violating foreign exchange rules over investments of 86 billion rupees ($1.51 billion).
The company was accused of violating the central bank's foreign direct investment rules under the Foreign Exchange Management Act by using overseas funds to buy agricultural land, which was not allowed, instead of for development projects, according to a government statement.
An external spokeswoman for Emaar Properties in Dubai had no immediate comment.
Emaar MGF Land has been building homes, offices, shops and hotels in India since 2005. - Reuters