THE IRISH promoter of an Indian property investment scheme has engaged a law firm to investigate concerns that investors’ funds may have been “mismanaged”.
In a statement sent yesterday to the 246 investors (90 per cent of whom are Irish) in the scheme, Dublin property company Kuvera Ireland said that it was “deeply concerned” with how investment monies have been spent by the scheme’s Indian management company, Kuvera India, and its developer, VG Buildtech.
However, Kieran Murphy, who co-owns Kuvera Ireland with his wife Suzanne Kelly, and on whose behalf the statement was issued, has a majority shareholding of 55 per cent in Kuvera India. It, in turn, owns 50 per cent of VG Buildtech.
Despite the fact that he owns a large stake in both Indian companies, a spokesman for Kuvera Ireland said Mr Murphy had been unable to obtain required information about the developments from his partners in those companies.
Kuvera Ireland has engaged the New Delhi-based law firm Fox Mandal Little to investigate the “current legal and financial status of the developments”, the statement said.
A total of €8.9 million was raised by Kuvera Ireland from investors who either paid deposits or paid in full for units in two developments – Orchard View and Mountain View – in Rudrapur, India, off plans.
It is understood that these developments have run into delays, but the reasons for this are as yet unclear.
According to the statement, some €5.4 million of the €8.9 million raised was transferred to Kuvera India, which then “discharged payments to VG Buildtech”.
Kuvera Ireland claims that the balance of €3.5 million was used for “ongoing working capital, promotions, advertising and commission”, and has denied any misappropiation of funds or that it engaged in “any form of illegal activity”.
The statement also said that the phone at the offices of Kuvera Ireland was currently “unmanned” because of the “threatening and abusive nature of calls that have been received by staff”. The office is, in fact, closed for the time being, although the company has not ceased operating.
According to a source, a number of investors have called to Mr Murphy’s home to confront him. On Tuesday night, a meeting of more than 40 affected investors took place and the group decided to consult an Irish solicitor, Anthony Joyce. They also plan to engage a lawyer in India.
Mr Joyce will attend the next investor meeting, which takes place at 8pm in Citywest Hotel next Tuesday, to outline their options. More than 70 investors are expected to attend.
