new delhi credit rating agency moodys has said that the indian government allegation against real estate company emaar mgf that it violated foreign exchange rules by using 15 billion of foreign funds to buy farm land is the latest action in a string of investorunfriendly moves that have negatively affected foreign companies recently the enforcement directorate ed had alleged that emaar mgf land ltd a joint venture between dubais emaar properties pjsc and indias mgf development violated foreign exchange rules by using rs 8600 crore 14 billion of foreign funds to buy agricultural land in the country under the foreign direct investment rules according to ed a company is not allowed to use foreign funds to buy agricultural land but emaar mgf in its draft prospectus filed with sebi in 2010 had stated that the company had received the necessary clarifications from indias ministry of commerce and industry regarding the acquisition of agricultural land a senior real estate consultant said that in 2010 department of industrial policy and promotion in a clarification had said that a real estate company with fdi up to 100 engaged in development of township housing infrastructure and construction development projects can purchase land including agricultural land to carry out permissible activities for a specific project he said that not only emaar mgf but a number of other real estate companies are also engaged in similar activities moodys said that the latest development in india is a reminder of the risks and uncertainties of investing in emerging markets even those with positive fundamentals attractive growth prospects and a rising middle class the report said the eds allegations create uncertainty around a 14 billion investment in india emaars exposure includes an investment book value of 650 million and an outstanding shareholder loan of 750 million to emaar mgf experts said that in order to make foreign investors more comfortable investing in the country the government must spell out its policy clearly and ensure stability they said that india remains an attractive destination as it gives one of the highest returns in world but there must be clarity and consistency in policies