belfasttelegraph

Monday 20 May 2013

Sean Quinn aide in row over transfer of £57m office block

Sean Quinn

One of Sean Quinn's former top lieutenants is at the centre of a major conflict over how ownership of a $90m (£57m) office block in India was transferred to a secretive offshore company.

Documents show the digital signature of former Quinn Group finance director Dara O'Reilly was used in a transaction that effectively transferred the valuable asset to a Dubai-registered company whose ownership is unknown.

But Mr O'Reilly said he never authorised the transaction — and refused to comment on whether he believed somebody else had.

The revelation raises major questions over who made the transfer, and who is now benefiting from the estimated $6m (£3.8m) in annual rent generated by the Q City office complex in Hyderabad, the fourth largest city in India.

It is the first time someone from outside the Quinn family circle has had their name feature in the Quinns' global scheme to put valuable foreign properties in the Quinn family's international property group (IPG) beyond the reach of the former Anglo Irish Bank.

Mr O'Reilly's digital signature, which has the same legal standing as a handwritten signature under India's strict e-commerce laws, was used on two crucial occasions last year — after he was ousted as finance director.

It was first used following a meeting on June 10, 2011, at the Kilmore Hotel in Cavan.

That meeting resulted in a special resolution being passed, which had the ultimate effect of diluting Anglo Irish Bank's hold on the ownership of the Q City property from 100% to 5%.

This was done by creating 300,000 new shares in Mack Soft, a local Indian company that owned Q City.

The special resolution, which reduced the potential value of Anglo's stake in Q City from $90m (£57m) to $4.5m (£2.8m), was signed by Sean Quinn Snr (left), who was a director of Mack Soft.

Weeks later, a document registering the special resolution was filed in India. The digital signature of Mr O'Reilly, who was also listed as a director of Mack Soft, was recorded on the document.

His digital signature was used for a second time later that month when almost 400,000 shares in Mack Soft were transferred to Mecon FZE, a Dubai company whose ownership Anglo, (now called IBRC), is unable to determine.

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