Games Village: Urban Development Ministry for penal action against builder

Wednesday, October 20, 2010

NEW DELHI - The Union Ministry of Urban Development has been asked to give permission to launch immediate penal action against the builder of the XIXth Commonwealth Games Village for non-execution of the project as per an agreement signed between it and the Delhi Development Authority (DDA).

According to a letter sent by the DDA to the ministry earlier this week, the builder - M/s Emaar-MGF Construction Pvt. Limited prima facie was found to have committed “deficiencies, shortcomings and delays” in the execution of the project, and therefore, attracted penal provisions as per the project development agreement (PDA).

The DDA and the ministry, through separate letters to Emaar-MGF Construction Pvt. Limited, said that the project developer had failed to achieve the milestones set for it in the agreement, had failed to make payments to various statutory bodies and agencies like the Delhi Jal Board (DJB) and the BSES for making services available and had committed a large number of defects in construction, specifically pertaining to the basement, lift pits, non-installation of hydro-pneumatic pumps, water-proofing of terraces, fixtures for balconies, inadequate power connection, choking of pipes and incomplete landscaping.

The ministry has listed 13 defects, the rectification of which lies with the project developer. They include removing adverse sloping in the basement area, clearing of debris, leakages in 73 lift pits, delayed fitting of three hydro-pneumatic pumps, poor water proofing of terraces and non-covering of shafts etc.

The ministry said the DDA is authorized to invoke the bank guarantee of Rs.183 crores and initiate legal action against M/s Emaar-MGF Construction Pvt. Limited and take other steps deemed necessary, including recovery of other expenses, for protecting the DDA’s interests. (ANI)

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