Irish investors hit by delays in Indian property scheme

HUNDREDS OF Irish investors may be affected by an Indian property scheme that has become mired in delays and confusion.

It is believed that 245 Irish investors bought a total of 294 apartments in two off-plan developments near Delhi in India through Dublin-based investment company Kuvera in the last two years, paying between €34,000 and €42,000 per unit.

According to sources the properties have not been completed and investors have been unable to get clarification as to the whereabouts of their money and whether or not they will get a refund.

Kuvera (which is the name of the Hindu god of wealth) is run by former stockbroker Kieran Murphy. There was no response yesterday at Kuvera’s Dublin offices, and Mr Murphy did not respond to a request for further clarification on the issue.

However, yesterday afternoon he issued a statement to investors to update them on the controversial Orchard View and Mountain View apartment developments in Rudrapur, India, “as far as I can”.

In the statement, he said Irish investors had contracted directly with the local Indian developer, VG Buildtech, when purchasing their properties. “At no time has there been any contractual relationship between the investors and Kuvera (Irl) Ltd,” he said.

He said that Kuvera Properties (India) Ltd is “the management company based in India to oversee the progress of the development and the financing of the development”.

“While in-depth queries have been raised by Kuvera (Irl) Ltd, the required information and clarifications have not been either forthcoming or satisfactory from VG Buildtech or Kuvera Properties India,” he said.

Information currently posted on www.kuvera-india.com describes Kuvera (Irl) as the “sales agent” for VG Buildtech. However, in 2007 it was widely reported that Kuvera had bought a 50 per cent stake in the building company.

Mr Murphy ran the equity sales department of BCP Stockbrokers until 2003 when he co-founded stock market training company Invest Like The Best. He later sold his share in this company to co-founder Rory Gillan, and set up Kuvera.

Last year Kuvera joined the Association of International Property Professionals, the industry watchdog for the international property market, but its membership lapsed in February of this year.

According to one investor who contacted The Irish Times, and who paid €34,000 to Kuvera for an off-plan two-bedroom apartment, it has proved extremely difficult to get any updates on the Indian development in recent weeks, and he feels that he is in a "legal limbo" at the moment.

A meeting of Kuvera investors took place last night in Citywest Hotel, Saggart.