This Article is From Oct 23, 2010

CWG corruption: EMAAR vs DDA blame game intensifies

New Delhi: As the multi-pronged probe into alleged Commonwealth Games corruption and financial irregularities gathers momentum, the battle between Village developer EMAAR MGF and the Delhi Development Authority (DDA) has got uglier.

EMAAR MGF is the builder of the Commonwealth Games Athletes Village. Designed as the epicenter of the Games, the Village became the catchment area for embarrassingly poor construction and facilities, reported on internationally in the days before the Games.

As government moves to freeze EMAAR's bank guarantee, NDTV has now accessed documents where EMAAR has blamed DDA for delays and interference, including 200 days DDA took to approve the building layout and delays in providing essential facilities like water, electricity and sewerage.

EMAAR MGF's letter to DDA written on June 16 this year said, "It is project developer's prerogative to engage sub-agencies and I don't think DDA should get involved as the same amounts to interference. As per the contract, no interference by DDA is stipulated. Please leave us to handle our agencies on our own...Delay in project totally attributable to DDA and its agencies who have not been able to complete their part of work and failed to provide essential services of water supply, electricity and sewerage."

The Rs.183 crore bank guarantee furnished by EMAAR MGF was on October 20 ordered to be confiscated on charges of irregularities.

The direction for confiscation of the Rs 183 crore bank guarantee was given by the Urban Development ministry to the DDA which had given the contract to the builder.

The Government action came a day after DDA submitted an interim report to the UD ministry in which it said there were "various deficiencies" and "irregularities" in construction of the Village and the builder had exceeded the permissible limits of construction.

EMAAR-MGF on its part said the Village was built to the "highest standards of quality and design" and all the pertinent milestones were achieved as per their scope of work.

The company also said all deficiencies pointed out by DDA or any other agency were duly rectified by it.

A Rs 760 crore bailout package given by Delhi Development Authority(DDA) for EMAAR-MGF also later came under the scanner. .

But unfazed by criticism over the bailout package, the government defended the step saying it was a "buyback arrangement" that led to a "win-win" situation for the DDA. (With PTI Inputs)

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