Kuvera rejects funds allegation

INDIAN PROPERTY management company Kuvera India has denied any mismanagement of funds raised from more than 200 Irish investors.

In a statement posted on property blog OverseasCafe, the chairman of Kuvera India, Dr Ajit Jha, rejected accusations made last week by Kuvera Ireland, the Irish promoter of a property development in Rudrapur, India, that it may have mishandled funds.

“The allegations of misappropriation of funds by Kuvera India are entirely false,” the statement said.

“All monies received from Kuvera Ireland are fully accounted for in Kuvera India’s books of account.”

Dr Jha confirmed to The Irish Times that he issued this statement. He also contradicted claims made by founder and director of Kuvera Ireland, Kieran Murphy, that he has been unable to get relevant information from Kuvera India and the local developer, VG Buildtech.

Mr Murphy has engaged an Indian law firm to investigate the activities of the two Indian companies, even though he owns a large share of both.

“Mr Kieran Murphy has been fully involved and participated in the day-to-day management and activities of Kuvera India and VG Buildtech,” Dr Jha said.

He continued: “He also already has in his possession the relevant account statements and financial details of Kuvera India.”

In a statement issued on his behalf last week, Mr Murphy claimed that of the €8.9 million raised from investors, some €3.5 million had been spent by Kuvera Ireland on working capital and marketing activities, and the balance of €5.4 million had been paid to Kuvera India.

However, Dr Jha claims that Kuvera India has only received approximately €4.716 million.

In addition, he said he was “shocked” to learn that Mr Murphy and Kuvera Ireland withheld €3.5 million “meant for the projects”.

He explained that the development projects are currently stalled because of lack of funds, “Kuvera Ireland having ceased to fund them”.

No money has been received from Kuvera Ireland in or after November 2008, he added.

A spokesman for Kuvera Ireland described the comments as inaccurate and misleading and reiterated that €5.4 million was sent to India.