HYDERABAD: The PIL bench of the AP High Court on Monday heard at length arguments in the Emaar properties case. The bench of Chief Justice Nisar Ahmad Kakru and Justice Vilas Afzalpurkar heard amicus curiae N Subba Reddy who justified the ongoing process and said the case was fit for prosecution and criminal investigation.He said that all transactions either by Emaar or the allottees must be stayed to ensure that the investigation can yield results. He described the entire activity as corporate fraud. “The then managing director of APIIC against whom an ACB inquiry has been ordered has now been made the home secretary. Why?” he asked.The bench was dealing with a letter by MLA Dr Shanker Rao who later became the textiles minister in the Kiran Kumar Reddy cabinet. The writ petition was strongly contested at all stages. Emaar, in fact, had even approached the apex court and opposed the writ petition unsuccessfully. Later, the bench ordered a prima facie enquiry. Aided with a report (in a sealed cover), the bench refused to adjourn the matter last week and started hearing the matter on Monday on schedule.Amicus Curiae Subba Reddy also argued that APIIC was defrauded by the flagship company Emaar and its other companies. He pointed out the unhealthy relationship between the various companies and said that this was a fit case for criminal prosecution. Pointing out that the state was duped of huge sums, he wondered where the money had gone? Why were third party companies introduced and who are the 18 fictitious names from Delhi to whom houses were sold?Senior counsel L Nageshwar Rao appearing for Emaar strongly contested the various allegations. He pointed out that the text and summary of the allegations were simply civil disputes and thus no criminal action could be taken in this situation.He also said that the company is being put to litigation on multiple fronts and therefore the present petition was not maintainable and not necessary. He pointed out that there was an ACB enquiry which was stayed by the court, a civil dispute by APIIC and also a petition pending before the Company Law Board. He also referred to the enquiry initiated by the Vigilance and Enforcement Department which was created to deal with the government and its employees looking into the contract and the activities. Nageshwar Rao also informed the court of the commercial relationship between Emaar and APIIC and how it created a new company to ensure against losses. He pointed out that bonafide commercial transactions cannot be investigated in the garb of a public interest writ petition.
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