Commonwealth Games Developer Emaar MGF's Offices Raided For Link With Madhu Koda

The offices of 2010 Commonwealth Games Developer Emaar MGF were raided for their links with former Jharkhand chief minister Madhu Koda. The Enforcement Directorate on Thursday carried on the raids at the offices as well as homes of several board members in and around Delhi in connection with the multi-crore money laundering scam.

Emaar has also been charged with alleged violation of foreign exchange rules and diverting money abroad.

A source at the directorate said, “Ten offices of Emaar MGF have been raided in Delhi and Noida in connection with violation of FEMA (Foreign Exchange Management Act) regulations and diverting money abroad.”

"We are also searching the residences of some board members who have links with Madhu Koda," he added.

"We cannot say anything at this moment. The operation is still on. We can comment only after it is over," he said.

Koda was the chief minister of Jharkhand from September 2006 to August 2008. An independent legislator, he was supported by the Congress, Jharkhand Mukti Morcha and Rashtriya Janata Dal.

Currently at the centre of a Rs.2, 500-crore money laundering scam, Koda is alleged to have swindled from the treasury to build a personal fortune. But he has denied any wrongdoing.

According to sources in the Enforcement Directorate, several Emaar MGF board members are directly linked to Koda's allegedly illegal transactions. Apparently, Koda used these Emaar MGF board members to send money out of the country in violation of FEMA regulations. The company has also been accused of bringing money into the country in violation of foreign exchange rules, and using this fund to buy agricultural land.

Emaar MGF is a joint venture between Emaar Properties of Dubai and MGF Development of India, brought the largest foreign investment in real estate in India in 2005.The company is developing the participants' village for the 2010 Commonwealth Games