Emaar-MGF’s Rs.183-cr bank guarantee confiscated
By IANSWednesday, October 20, 2010
NEW DELHI - The central government Wednesday confiscated Rs.183-crore bank guarantee from Emaar-MGF, a day after the Delhi Development Authority (DDA) came out with findings of irregularities by tne builder in the construction of Commonwealth Games Village.
According to a source in the urban development ministry, the amount was provided by the builder as bank guarantee. The DDA will now take legal action against Emaar-MGF for the recovery of expenditure above the guarantee, the source added.
After union Urban Development Minister S. Jaipal Reddy asked for a report from the DDA Oct 7 on the issue, the housing agency submitted an interim report to the ministry that there were “irregularities” and “deficiencies” in the work done by the company, the source in the ministry said.
The 1,168 flats in the Games 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.
