Emaar MGF has been found violating companies law by Corps
Emaar MGF, the real estate major, is found to have done violations on various matters including those related to corporate governance and related party transactions, as per the Corporate Affairs Ministry.
Sources said, the violations were found by Registrar of Companies (RoC), Delhi, during an inspection of the books of Emaar MGF and added that after final clearance a show-cause notice is likely to be issued soon to the company.
An Emaar MGF spokesperson, when contacted, said, “We are not in a position to comment on the issue as we have not received any communication from the ROC. The company follows high standards of corporate governance.”
The spokesperson also termed the matter as speculative at this stage.
The Ministry had ordered the inspection of the books of Emaar MGF by RoC following a complaint filed by a Member of Parliament.
Emaar MGF Land Ltd, a leading realty player, is a joint venture between Dubai-based Emaar Properties PJSC and MGF Development Ltd. The entity is registered with RoC, Delhi while it had earlier proposed to get listed as well but soon after withdrew the plans.
Preliminary findings reveal that various provisions of the Companies Act were violated by the company, according to sources, including those involving related party transactions, possible high premium charged from foreign entities, disclosures and some accounting aspects, among others.
Sources further said Emaar MGF appears to have followed poor corporate governance practices and there have been weak disclosures. They noted, the accounting did not reflect the real situation in a few instances and the concerned auditor could also be asked to explain.
Source: The Economic Times
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