HC allows DDA to encash Rs 90 crore Emaar MGF guarantee

In a set back to real estate giant Emaar MGF, the builder of Commonwealth Games(CWG) village, the Delhi High Court today allowed the DDA to encash Rs 90 crore, which was deposited by the company as bank guarantee, for not completing the project on time.

In an interim order, Justice Vipin Sanghi said that "the pay order for Rs 90 crore may be encashed (by the DDA)."

The Court passed the order on a petition filed by the company seeking to restrain DDA from seizing the bank guarantees of Rs 183 crore as damages for not completing the project on time.

The court, however, said that the rest of the amount of Rs 93 crore, shall not be encashed if it has not been encashed so far.

Prime Minister Manmohan Singh had appointed a high-level committee headed by a former CAG to go into the allegations of corruption related to the mega sporting event.

The committee, headed by former Comptroller and Auditor General (CAG) V K Shunglu, was asked to submit its report to the Prime Minister within three months.