New Delhi: It's all out war between the government and the builders given the contract to finish work on the Commonwealth Games Village.
A day after the government decided to take legal action against Emaar-MGF for failing to complete work on the Games Village on time, CNN-IBN gets access to a letter written by the builders to DDA accusing its own staff of damaging facilities inside the complex.
The letter written by the Emaar-MGF to DDA dated September 3, 2010, complained about how DDA's own employees and support staff were damaging towers inside the Village.
The letter stated how rowdy ITDC staff urinated in clean bathrooms, damaged lifts while carrying furniture and criticized the housekeeping staff of the Games Organizing Committee.
It also accused labourers of littering the housing area and stealing equipment.
The guests have left the Commonwealth Games Village but the ghosts are returning to haunt builder Emaar-MGF and DDA which were awarded the project. The Urban Development Ministry which governs the DDA has fired the first salvo against the builder.
The Centre has decided to confiscate Rs 183 crore bank guarantee given by Emaar-MGF for failing to deliver the Games village on time.
The DDA wants an additional Rs 84 crore as damages from Emaar MGF for going beyond the Games project deadline and not completing landscaping work.
It has decided to invoke the bank guarantee of Rs 183 crore. Legal action will be taken by DDA to recover other expenditure that includes - Rs 44.65 crore for not completing work including landscaping, Rs 38.65 crore for not completing the project on time. Sources say Emaar MGF also even failed to pay water and power bills.
In the middle of this fight between DDA and Emaar-MGF close to 800 people who have paid anything between Rs 1.8 crore to Rs 4.8 crore, to own an apartment in this high-end project, are left in the lurch. Emaar was the sole bidder in 2007 and got 27.2 acres to build 1168 apartments.
The builders plan went haywire when their ambitious Rs 8000 crore IPO failed in February 2008.
However, DDA bailed out the builder paying Rs 770 crore and got rights to sell 333 apartments. Things then went from bad to worse. Emaar was denied a completion certificate in March this year (2010) as DDA accused the builder of unauthorized construction, Emaar MGF also took DDA to court. During the duration of the Games the Village got a temporary occupation certificate.
Emaar MGF is talking of a three month delay. With the Government asking the builder to account for every penny, occupying these flats will take more time than promised.
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