Investors are calling for the ouster of managers at Indian property developer Ireo Management Pvt. Ltd. amid increased efforts to recover US$1.6 billion worth of investments, London's Financial Times reported.

The Indian developer's management stands accused by roughly 400 investors of siphoning most of the US$1.6 billion for its own benefit, according to the publication.

Ireo Managing Director Lalit Goyal dismissed the allegations as a "classic hedge fund strategy to take over the company," according to the publication.

In June, U.S. hedge fund Axon Capital LP and British investor and hedge fund manager Christopher Hohn's Children's Investment Fund Foundation accused the Indian developer of running a scam. Hohn stands to lose roughly US$40 million of his own money and about US$140 million from the charitable arm of his hedge fund, FT noted.

Axon has filed legal proceedings in India with the support of more than 100 investors to remove the developer's management and block asset sales while the company is investigated. In a letter to investors, Axon said Ireo may be attempting to cover wrongdoings and hide past transactions, according to the Dec. 13 report.