SC denies MGF’s plea, directors’ request for stay on Emaar’s FIR

The First Information Report (FIR) filed by Emaar India against MGF Development Limited and its directors for allegedly syphoning off 180 crore was denied by the Supreme Court.

The bench said the observations of a trial court or the high court will not prevent the petitioners from availing of all legal remedies.

In order to get Emaar to sign collaborative development agreements with Nanny Infrastructure Private Limited and Saum Infra Private Limited without disclosing their connections to these companies, MGF and its ten directors are accused.

Shravan Gupta, director of MGF, is accused by Emaar of syphoning off 37.34 crore and 142.68 crore by entering into joint development contracts for two home projects with the two companies. It said that Gupta and his friends established the two businesses as front firms to syphon off the money.

The top court was advised by senior attorneys Mukul Rohatgi and Siddharth Luthra, who argued on behalf of MGF, that the issue is of a civil character and is being unduly given a criminal tint. They claimed that there was an ongoing arbitration between the two businesses in London.

Maninder Singh, the attorney representing Emaar, said that the defendants secretly took the money for their own purposes, which precludes it from being regarded a straightforward financial transaction.