The Children's Investment Fund Foundation and equity firm Axon Partners have accused Indian real estate developer IREO Management Pvt. Ltd. of defrauding foreign investors out of at least US$147 million, The Washington Post reported, citing obtained documents.
The two companies, which invested nearly US$300 million in IREO, submitted a criminal complaint with New Delhi police in February, claiming that IREO Managing Director Lalit Goyal, Co-founder Anurag Bhargava and others participated in a large-scale fraud by illegally siphoning off investor funds of at least US$147 million, though the total could be as much as US$200 million, according to the report.
The investment companies declined to comment, while Bhargava did not respond to requests for comment, The Post noted.
IREO is the Trump Organization's real estate partner on an office tower project in India, the publication added.
The IREO group of funds manages upward of US$1.6 billion from sovereign wealth and university endowment funds, a 1,485-acre portfolio in the Delhi area and in Punjab, India, and 18 million square feet of commercial and residential development projects.