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Reddy justifies DDA giving Rs.760 cr to Emaar-MGF for Games Village project | | 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."
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