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DDA to invoke Games Village developers' 183-crore bank guarantee for project ‘flaws'

Madhur Tankha

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This way to the village: More to it than meets the eye?

NEW DELHI: The Delhi Development Authority announced on Wednesday that it would invoke the bank guarantee of Rs.183 crore furnished by Emaar MGF, the project developer of the Commonwealth Games Village here, and also initiate legal action against it in view of various shortcomings and deficiencies in development of the project.

The DDA said further legal action would also be taken for recovery of other expenditure over and above the bank guarantee furnished by the project developer.

It has also sent a notice to the developer asking it to deposit Rs.83.70 crore as liquidated damages for not achieving two “milestones” in time which related to completion of all development work including landscaping and project completion date.

Besides, the DDA has also forwarded to the developer lists of some defects that need to be rectified.

It has stated that if these defects are not rectified the amount spent on removing them would be deducted from the performance security in the form of bank guarantee.

Centre's nod

“On the refusal of the developer, the DDA has been making payments to Delhi Jal Board and BSES for making the services available. All the amounts have to be recovered/adjusted from the bank guarantee furnished by project developer,” said DDA Principal Commissioner Veena Ish.

The decision came after the Union Urban Development Ministry, under whom the Authority functions, gave its nod to proceed against the developer.

The Ministry in a reply to DDA on Wednesday agreed with its findings in the preliminary report.

It also directed the Authority to proceed with the action to invoke the bank guarantee and to initiate legal action against the project developer.

The land agency had in its preliminary report submitted to the Ministry earlier this week mentioned that a large number of defects were noticed in the construction of the Games Village but were not attended to by the project developer despite being brought to its notice.

The defects pertained to basement, lift pits, non-installation of required number of pneumatic pumps, waterproofing of terrace, fixtures of balconies, choking of pipes and incomplete landscaping.

Asserting that the Games Village had been built to the highest standards of quality and design, an Emaar MGF spokesperson said the Village was handed over to the DDA and the Organising Committee after a full inventory of facilities, items and assets in June this year.

“The Village received rave reviews from all participants who stayed there. All deficiencies pointed out by DDA or any other agency were duly rectified by us. If there are any pending items that need rectification, they shall also be done after the village is handed over back to us by the OC and the DDA,” he added.

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