Ambati Rambabu, former chairman of Andhra Pradesh Industrial Infrastructure Corporation (APIIC) and a close confidant of Kadapa MP Y S Jagan Mohan Reddy, on Sunday appeared before the Central Bureau of Investigation (CBI) in connection with the alleged irregularities in the APIIC-Emaar Properties land deal.
Rambabu, who was chairman of APIIC in the YS Rajasekhara Reddy government during 2005 and 2007, appeared before the CBI at the Dilkusha Guest House here at around 10 am.
Last week, the CBI had slapped notices on Rambabu, asking him to appear before it by January 8. The central agency has already arrested Trimex Group chairman and promoter of Stylish Homes Real Estate Private Limited – Koneru Rajendra Prasad – in the Emaar-APIIC case. He is currently under judicial custody and is lodged in Chanchalguda jail.
Stylish Homes, one of the marketing agents for Emaar, is accused of undervaluing the rates of the plots and villas for government record, and selling it at higher rates causing loss to the state exchequer.
The CBI had registered a case against Emaar-MGF, its sister concerns and others in August 2011 on allegations that favours were extended to it by the state government officials in the execution of Boulder Hills – a luxury township project – on the outskirts of Hyderabad.
On August 10, 2011, the Andhra Pradesh High Court had ordered a CBI probe into the land allotments made to Emaar by the then YSR-led government and dilution of APIIC’s stake in the joint venture with Emaar for the development of the project.
It may be noted that APIIC had earlier said the agreement signed with Emaar Properties in 2005 was violated when Emaar Hills Township, the special purpose vehicle created by the developer for execution of the township project, roped in Emaar-MGF without a prior written consent of state corporation.