Government to penalise EMAAR-MGF

New Delhi, Oct 20 (IBNS) The government is likely to forfeit Rs.183 crores that real estate developer EMAAR-MGF have deposited as a bank guarantee for the Commonwealth Games Village that it built, according to reports on Wednesday.

The government says it has frozen this account and will penalise EMAAR for structural defects, and inadequate amenities including insufficient power and waste supply for the apartments that housed the delegates from 71 countries that participated in the Games.

The Delhi Development Authority (DDA), the nodal agency that gave the contract for the Village, also finds itself in a considerably awkward position as it gave EMAAR a giant bailout package to help the developer to construct the Village.

In 2009, EMAAR said that due to the global recession, it had run out of capital and could not proceed with the construction of the Village. The DDA stepped in with a Rs.700-crore bailout. DDA bought 300 apartments to bail out EMAAR-MGF.

The DDA, which is headed by Delhi’s Lieutenant Governor, Tejender Khanna, is already being investigated by the Central Vigilance Commission for possible corruption and for its poor execution of Games-related projects.

The DDA submitted a report to Urban Development Minister Jaipal Reddy in which it said EMAAR was guilty of “major irregularities” in the construction of the Village.

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