Emaar-MGF denies bank guarantee confiscated by DDA

Wednesday, October 20, 2010

NEW DELHI - Emaar MGF, the private developer of Commonwealth Games Village, Wednesday denied that the Delhi Development Authority (DDA) had confiscated its bank guarantee worth Rs.183 crore.

The company said that the guarantee had only been extended till Dec 31 at the behest of the DDA.

Emaar MGF’s clarification came after reports that the DDA had confiscated its bank guarantee on account of deficiencies in the village.

It is incorrectly being reported in the media that the bank guarantee has been confiscated. We have not received any notice for the encashment of the guarantee, the company said in a statement.

According to the company, the village had been built with the highest standards of quality and design.

The (Games) Village was handed over to the DDA and the Games Organising Committee (OC) after a full inventory of facilities, items and assets in June, the statement said.

The statement further said that all deficiencies pointed out by the agency were duly rectified, and if there were any pending works these would be done after the Village is handed back to the company by the OC and the DDA.

The company also denied allegations of having outstanding dues to civic agencies like the water utility Delhi Jal Board (DJB) and the electricity utility BSES.

No dues are outstanding to any government agencies including the DJB and the BSES, the statement further said.

According to the company, the DDA purchased 333 apartments in the village at a much lower price as compared to the market price and that the company was yet to receive the full payment.

We are yet to receive the full payment of the same. Additionally, we had also offered the DDA an option to buy back the apartments sold to them, the statement added.

Earlier sources in the urban development ministry said the company’s bank guarantee worth Rs.183 crore was being confiscated, a day after the DDA came out with findings of irregularities by the builder in the construction.

The sources said that the DDA may take legal action against the company.

The 1,168 flats in the village were constructed at a cost of over Rs.1,000 crore and the project was delayed. The work to maintain cleanliness in the village continued even after athletes and delegates started arriving for the Games, a DDA report said.

Filed under: Commonwealth Games

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