Singapore property conglomerate CapitaLand Group Pte allegedly took bribes from a longtime contractor of its projects in India, Bloomberg reported, citing a lawsuit. The allegations are against a former director who oversaw the company’s investments in India. While CapitaLand itself is not a party to the lawsuit, both sides have named it in their filings.
Singapore’s CapitaLand Group Pte has been linked to bribery allegations involving one of its longtime contractors in India, Bloomberg reported, citing court filings. The claims centre on a former director who oversaw the company’s investments in the country. While CapitaLand itself is not a party to the lawsuit, both sides have named the property conglomerate in their filings.
Employees received ‘corrupt payments’
According to the lawsuit, some staffers in India received “corrupt payments” in relation to International Tech Park in Pune, which is about 70 miles southeast of Mumbai.
“This matter is related to a past incident involving former employees in India in 2023,” a spokesperson for CapitaLand told FinancialExpress.com.
The spokesperson said that the company immediately informed authorities in India after learning about the bribes. The police are investigating the matter, and the employees, who have allegedly taken bribes, have either been terminated or asked to resign.
The statement further added, “Upon discovery of the incident, the company promptly investigated the matter and reported the case to the relevant police authorities at that time.”
The real estate company added that it follows a “zero-tolerance” policy against such “unethical conduct”. “CapitaLand is fully committed to conducting business with the highest ethical standards and integrity and has a zero-tolerance policy towards unethical conduct,” the company further said.
It is to be noted that Singapore is one of the least corrupt nations in the world.
The company has over $6.2 billion in funds for investments in India, and it plans to add more to it, $15 billion by 2028, Bloomberg reported.
Lee Kim Tah seeking $1.57 million back
The tech park in Pune, which was inaugurated in 2023, houses offices of Whirlpool, Bharti Airtel and more. It is a three-multistorey campus which was acquired by Ascendas India Growth Programme in 2017. The campus was built at a cost of $201 million.
CapitaLand collaborated with L&W Construction for the project, a company with which the real-estate giant has worked since 2009, for projects in India. L&W is a joint venture between two Singapore construction firms, Lee Kim Tah Pte and Woh Hup Holdings Pte.
Lee Kim Tah filed this lawsuit against former director Edmund Cheah, who used to oversee the company’s investments in India. He is seeking around $1.57 million back. Interestingly enough, the other arm of the joint venture isn’t party to the case.
While the lawsuit did mention that the company entered into “dubious transactions”, but didn’t quote an amount.
Director rubbishes claims
However, the director has denied these claims, saying that he acted in the “best interests”, Bloomberg reported.
The report also mentioned that some former CapitaLand employees allegedly demanded or received payments from L&W dating back to 2019, in exchange for work certifications and timely bill approvals.
A 2023 internal probe revealed claims that a L&W executive had bribed both a CapitaLand employee and government officials in connection with the Pune project. Big Four accounting firm KPMG was hired to investigate, though its findings remain undisclosed. Specific allegations include an ex-CapitaLand employee seeking kickbacks worth up to 9 million rupees and demanding 1% of a contract’s value, which was refused, the report added.
Police in Pune also arrested several L&W employees in 2023 for alleged fund misappropriation. In response, CapitaLand stopped awarding new contracts to L&W, though the contractor continues to finish two ongoing projects under the Lee Kim Tah–Woh Hup joint venture. The lawsuit is still before the courts.