The records of the company that came under scrutiny have revealed a series of alleged irregularities involving deception, undervaluation, and misrepresentation.
According to the audit, which was commissioned by the interim resolution professional (IRP) for Logix Infratech that went into insolvency in September 29, 2022, the flats were allotted to Anand Kumar and Vichiter Lata on the basis of an agreement with Logix Infratech in 2010 – when Mayawati was Chief Minister – to sell approximately 4 lakh square feet of space in Blossom Greens for the flats which were eventually allotted in the 2016-17 financial year.
The audit report highlighted Anand Kumar was termed as an investor to the project and have bought a space of 2.0 lakh square feet at Rs 2,300 per square feet.
“However the average net rate at which the units transferred to other home buyers in the Financial Year 2016-17 was Rs 4,350.85 per square feet, which is higher than net rate agreed to Anand Kumar,” the audit report highlighted, saying that the market rate 46 per cent higher than what Anand Kumar paid.
The audit report said: “Hence the transactions are undervalued under Section 45 of the Insolvency and Bankruptcy Act 2016.”
“As per the agreement dated July 8, 2010, the Units to Anand Kumar need to be allotted in ‘Non-PLC’ floors, which means all floors shall be above the sixth floor in different towers of the project and the Penthouse. However, as per letter dated April 4, 2016, it is inferred that 48 units which have been allotted are below the sixth floor,” the report said.
Similarly, the report also highlighted that as per the agreement dated July 19, 2010, the units to Lata need to be allotted in ‘Non-PLC’ floors, which means all floors shall be above sixth floor in different towers of the project and includes the penthouse. However, as per the letter dated April 4, 2016 it is inferred that 22 units which have been allotted are below the sixth floor.
The report also highlighted that some of the units allotted to Anand Kumar and his wife were already in possession of other parties suggest that there have been some misrepresentation or deception involved in the allotment process.
The transaction audit report also pointed out that the units transferred in the name of Kumar, in the books of accounts through journal voucher on April 4, 2016, amounted to Rs 27.6 crore. Though bank receipts and bank statements are showing the receipt of amount, on our analysis, we found that the funds so received were transferred to the related parties.
“Also as per the receipts provided, the total amount received from Kumar was Rs 28.24 crore, whereas the amount transferred to the unit is Rs 27.60 crore, thus there is a shortage of Rs 63.97 lakh. We were not provided with any explanation for the shortage in the amount,” the report said.
“Overall, based on the information provided, the allotment of units to Anand Kumar and the nature of the transaction is fraudulent.
“Hence, we are classifying the transactions as fraudulent under Section 66 of the Insolvency and Bankruptcy Code, 2016,” the audit report stated.
Logix Infratech Private Ltd is the real estate firm in question which was incorporated in May 2010, coinciding with the tenure of Mayawati as Chief Minister. She was at the helm of affairs from 2007 to 2012.
