DLF:Deals with Vadra transparent, in high standards of ethics

New Delhi, Oct 7: Realty major

on Oct 6 rejected the allegations that it had given unsecured loans to

as a 'quid pro quo' for favours and said it had transparent dealing with him as an individual entrepreneur.

In a statement, the company said it had given Rs 65 crore as "business advances" out of which Rs 15 crore was fully refunded and Rs 50 crore was used for purchase of land.

Rejecting the allegations made by activists Arvind Kejriwal and Prashant Bhushan that the company favoured Vadra, DLF said it neither received any undue benefit from any state governments nor was it allotted any land by Delhi, Haryana and Rajasthan governments.

DLF also dismissed the charge that the company sold properties to Vadra and his companies at a throwaway price. "We would like to state that the business relationship of DLF with Mr Robert Vadra or his companies has been in his capacity as an individual entrepreneur, on a completely transparent and at an arm's length basis," DLF said.

DLF said the business relationship with Vadra has been conducted in the highest standards of ethics. "We wish to categorically state that the DLF has given no unsecured loans to Mr Vadra or any of his companies.

An amount of Rs 65 crores was given as business advances for the purchase of land in two transactions," it added. DLF said it purchased 3.5 acres of land in Gurgaon from Skylight Hospitality for Rs 50 crore in 2008-09.

"At no stage was a interest free loan ever given to the Skylight group. There were two sets of business advances against purchase of property, one of which amounting to Rs 50 crores resulted in a satisfactory conclusion of purchase of commercial land and the second advance of Rs 15 crores was fully refunded," it added.

DLF also said that "it is not unusual for parties which sell land to DLF to choose to reinvest the consideration received or part thereof in projects being developed by DLF".

"There is no question of offering, let alone selling, Mr Vadra or his group companies any property at a throwaway price. The allegation that 7 apartments in Magnolias were sold for Rs 5.2 crores only is also completely baseless. At no stage was a property ever sold to the Skylight group below the then offered price to all customers," DLF said.

PTI