SOME 400 people who invested in a scheme to buy apartments in India are being invited to join settlement talks with a businessman and company involved in the scheme, which has run into “significant difficulties”, the Commercial Court heard yesterday.

About 120 of the investors initiated legal action last month aimed at recovering some of an apparent €8.9 million allegedly raised by an Irish company from up to 400 people under the Indian property scheme.

The investors claim there was no evidence of any meaningful construction work on the two proposed developments of 580 apartments and allege that the scheme was designed to facilitate, in whole or in part, the “siphoning off” of funds to the benefit of Kuvera (Ireland) Ltd, Marlborough House, Donnybrook, and its chief executive, Kieran Murphy, of Cabinteely Way, Cabinteely, Dublin.

Settlement talks are under way in those proceedings, Mr Justice Peter Kelly was told yesterday.

Oisin Quinn, for Kuvera and Mr Murphy, said there were no admissions of liability by his clients but it was accepted that “significant difficulties” had arisen relating to property investments in India.

His clients would be inviting all other investors to join the settlement talks because they wanted any compromise which might be reached to apply to all.

Mr Justice Kelly adjourned the proceedings for three weeks to facilitate the settlement talks.

He also made consent orders restraining Kuvera and Mr Murphy from reducing their assets below €3.2 million and directing them to disclose information concerning assets and other documents.

The orders also provide for the payment of Mr Murphy’s living, legal and mortgage expenses.

Mr Murphy has five investment properties in England and his assets do not exceed €3.2 million, the judge previously heard.

The proceedings are also against Seymour Major, trading as Seymour Major solicitors, Belmore Street, Enniskillen, Co Fermanagh, but no order is sought against him at this stage.

Last April, Kuvera Ireland said in a press release that some €8.9 million was raised from investors and it, after deducting some €3.5 million for its “running costs”, had paid some €5.4 million to Kuvera India, which it alleged was incorporated to oversee two apartment developments to be built by Indian-based builder VG Buildtech.

The plaintiffs claim that, despite being allegedly told by Mr Major that the purchase of the proposed properties was “completely safe” under Indian law, their contracts with VG Buildtech are “invalid, defective and worthless”.