The Delhi high court on Monday dismissed the petition of Emaar-MGF to stop the DDA from confiscating the builders’ Rs 183-crore bank guarantee.
The Delhi Development Authority (DDA) had taken over the money on the grounds that the builders of the Commonwealth Games Village did not complete the project on time.
However, justice Vipin Sanghi ordered a status quo on the process of encashment of the bank guarantee till Friday, as the company pleaded for time to file an appeal against the order before a larger bench.
While approving partial encashment of the bank guarantee (Rs 93 crore), the court, on October 25, had asked the DDA to not encash the entire amount.
Emaar-MGF had approached the court to restrain DDA from seizing its bank guarantee as damages for not completing the project on time.
The housing body, however, had proceeded to seize the bank guarantee on the orders from urban development ministry.
The DDA was also told to initiate legal proceedings against the company for recovery of other expenditure for “deficiencies” and “delays” in construction of the Games Village.
Court rejected the company's argument that DDA issued them completion certificate for the projects and therefore it could not be said the projects were not completed on time.
The judge upheld the argument of DDA counsel that only a temporary occupancy permit was granted — to facilitate the use and occupation of the flats during the Games.
“Obviously this was done due to the extraordinary situation, as the nation was faced with the prospect of not being able to successfully hold the Games,” the judge said.