Thursday, October 21, 2010

Congress govt gave Emaar-MGF Rs 760 cr

Published>Thu, Oct 21 10 05:51 PM

In the run-up to the Commonwealth Games, the Centre had cleared a bailout package of Rs 760 crore to real estate major Emaar-MGF for completion of the Games Village project.

"It was decided in the interest of the Games to give a bailout package of Rs 760 crore by the DDA to Emaar-MGF against the purchase of 333 apartments in the Games Village," said a source in the Urban Development Ministry.

"The construction of Games Village was going on at a snail's pace and the builder was facing a financial crunch due to various reasons. So, a bailout package was necessary to complete the project in time," sources said.

There are a total 1,168 apartments in the Games Village. "The bailout package for Emaar-MGF worked out by the Lt-Governor of Delhi, who is also the Chairman of the DDA, was duly approved by the Centre", said the sources.

According to a senior official in the L-G office, "the bailout decision was taken after taking approval of all stakeholders. It was an emergency situation and we had to take a decision considering the urgency, said sources in LG's office.

The LG had also directed the DDA to carry out a detailed audit of all the spendings in the Games Village including the expenditure incurred by Emaar-MGF in developing the Village.

Emaar-MGF, however, clarified that "DDA purchased 333 apartments as a much lower rate compared to the existing market price at which Emaar MGF was selling. We are yet to receive the full payment of the same.

"Additionally, we also offered the DDA an option to buy back the apartments sold to them", the company said.


Source: Web Search

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