Govt had no choice but to go for buy-back with Emaar-MGF:Reddy

Govt had no choice but to go for buy-back with Emaar-MGF:Reddy

"Basically there was no bail out (package). It was a buy back arrangement by the DDA to enable the developer to complete the Games Village," Reddy said.

He said the contract could have been given to some other contractor but that would have meant a huge delay in the project which was crucial for the successful hosting of the event.

"The DDA apparently went for a buy back arrangement. Through the buy back, the DDA will make a profit of more than Rs 300 crore," he said, without elaborating on how DDA will make the profit.

Reddy said the DDA was taking steps to confiscate the Rs 183 crore bank guarantee furnished by Emaar-MGF which he said is "by far the biggest radical step taken in the recent history".

Acting tough, Government yesterday ordered confiscation of Rs 183 crore furnished by Emaar-MGF as bank guarantee and initiation of legal action against it for recovery of other expenditure for "deficiencies" and "delays" in construction of the Commonwealth Games Village.

The direction by Union Urban Development Ministry to Delhi Development Authority came a day after the authority submitted an interim report in which it said "immediate action" is required to be taken against the builder for the "non-execution of the project as per the Agreement".

Holding the private developer responsible for irregularities in the Village project, Reddy said the government just wanted to ensure timely completion of the project.

"It was a failure on the part of the developer. What can you do with it? You are stuck with it. You could go after the blood of the developer or you could give up the Games. What was the priority at that time. Was it going after the blood of the developer or was it getting the Games Village completed," he asked and added that the government did not have a choice.