The Delhi Development Authority, which directly falls under the ambit of Union Urban Development Ministry, had given Rs 760 crore financial assistance to Emaar-MGF to ensure that the builder completed the Games village on time. This fund was given after the builder complained to the government in the midst of the project works that it was finding difficult to complete it due to financial crunch.
The DDA which was eager to complete the Village on time had given the money in return for 333 apartments from the builder. However, the builder faced strong criticism for “deficiencies” and “delays” in construction.
Buy-back arrangement
“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 which 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 profit.
Following strong criticism about delay and deficiencies in construction, the Urban Development Ministry on Wednesday directed DDA to confiscate the Rs 183-crore bank guarantee furnished by Emaar-MGF and initiate legal action against it. Meanwhile, a Parliamentary Committee will visit the site on November 3 for assessment of the work done there and present its report to Lok Sabha during the upcoming winter session.
The Estimates Committee of the Lok Sabha, at a meeting here a few days back, discussed issues related to conditions at Games Village which came up in 63.5 hectare on the bank of Yamuna river in East Delhi.
