JP Morgan Ignored cases pending against Emaar MGF

New Delhi, Nov 9: The International Consortium of Investigative Journalists (ICIJ) has once brought out paradise papers - the documents to shun the light on offshore entities.

The documents reveal that how JP Morgan has approached the Law firm to sell its stake in Emaar MGF. The papers show that JP Morgan approached law firm in September 2015 for legal assistance in selling over 7 million equity shares it held in the Indian realty developer to Hong Kong-based asset management firm SSG Capital Management.

Dubai-based Emaar Properties PJSC and India's MGF Development Ltd announced the decision to end their joint venture — Emaar MGF — through reorganization and demerger in April 2016.

In 2007, JP Morgan Mauritius Holdings II Limited (JPII) — a subsidiary of JP Morgan Chase & Co —buyed 7,237,704 equity shares in Emaar MGF.The Company wanted to sell its shares to SSG Group.

However, the Company has ignored the cases that were filed against the Emaar MGF.

Feb 2008: Case registered by Delhi police for suspected involvement in the land scam.

Dec 2009: Allegedly involved in money laundering scam.

Feb 2012: Chargesheet filed by CBI under Prevention of Corruption Act as accused in the Andhra Pradesh Industrial Infrastructure Corporation (APIIC)-Emaar properties scam.

June 2014: Office premises searched by Income Tax department for alleged tax evasion.

Emaar MGF Response

A spokesperson of Emaar MGF Land Ltd said that "JP Morgan has been a shareholder of the company since 2007, holding approximately 0.7 percent equity shares. As per the records of the company, the said entities transferred these shares during 2015 and 2016. These transactions were secondary market transactions between the said entities, and the company has no role or financial involvement in such transactions, except recording the name of the shareholders in its records."