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TCI, Axon accuse Indian real estate company of $1.5 billion fraud: Report

Hedge funds The Children’s Investment Fund Foundation (TCI) and Axon Capital have accused real estate developer IREO Management of defrauding its investors of $1.5 billion.

The companies have accused IREO of criminal conspiracy involving shadow companies, dumped documents and “astonishing theft”, according to a report by Bloomberg.

“Someone cannot simply just take billions of dollars of our money and get away with it,” Axon’s Dinakar Singh was quoted as saying

Axon and London-based TCI have invested about $300 million in IREO. The two firms have filed a criminal case against the real estate developer in Delhi.

The hedge funds allege that IREO’s Managing Director Lalit Goyal created shadow companies to siphon money from the company, Bloomberg reported.

Both hedge funds had initially estimated the fraud at $147 million, but raised the estimate at a meeting on Monday.

The two companies had first noticed signs of trouble four years ago, Bloomberg reported.

In 2016, TCI and Axon had initiated legal proceedings against IREO in Mauritius, where the fund is based.

[“Source-moneycontrol”]