Reddy justifies DDA giving Rs.760 cr to Emaar-MGF for Games Village project
By ANIThursday, October 21, 2010
NEW DELHI - Union Urban Development Minister S Jaipal Reddy on Thursday defended Delhi Development Authority’s financial package of rupee 760 crore to Emaar-MGF, stating it was given to the private builder to ensure timely completion of the Games Village project.
He said timely completion of the work at the Games Village was crucial for the Commonwealth Games.
“Basically, there was no bail out (package). It was a buyback arrangement by the DDA to enable the developer to complete the Games Village,” the minister said. .
Even though the contract could have been given to some other contractor, Reddy said, but that would have meant a big delay in the project that was crucial for the successful hosting of the mega sporting event.
“The DDA apparently went for a buyback arrangement. Through the buy back, the DDA will make a profit of more than Rs 300 crore,” he said.
Disclosing that the DDA was taking steps to confiscate the Rs 183 crore bank guarantee furnished by Emaar-MGF, Reddy said, which is “by far the biggest radical step taken in the recent history”.
On Wednesday, taking a stern action the Government ordered confiscation of the bank guarantee furnished by Emaar-MGF and initiation of legal action against it for recovery of other expenditure for “deficiencies” and “delays” in construction of the Commonwealth Games Village.
The direction by Union Urban Development Ministry to Delhi Development Authority came a day after the authority submitted an interim report in which it said “immediate action” is required to be taken against the builder for the “non-execution of the project as per the Agreement”.
Holding the private developer responsible for irregularities in the Village project, Reddy said the government just wanted to ensure timely completion of the project.
Stating the Government was left with no choice ahead of hosting of the games, Reddy said: “It was a failure on the part of the developer. What can you do with it? You are stuck with it. You could go after the blood of the developer or you could give up the Games. What was the priority at that time? Was it going after the blood of the developer or was it getting the Games Village completed.” (ANI)
