The Delhi High Court on Monday reserved its verdict on real estate major Emaar-MGF's plea against the Centre's order asking Delhi Development Authority (DDA) to seize the firm's entire bank guarantee worth R 183 crore as damages for its failure to complete the Commonwealth Games Village project in time.
Justice Vipin Sanghi reserved the order after hearing the arguments from the counsels of both Emaar MGF and DDA.
Additional solicitor general Indira Jai Singh argued that DDA was entitled to encashing the entire bank guarantees of Rs 183 crore (R 150 crore of SBI and Rs 33 crore of State Bank of Patiala) furnished by the company as it has failed to meet the March 31, 2010, deadline to complete the project.
"Till today, the company has not completed the work, including the exterior of some towers, including milestones 8 and 9 (towers have been rechristened as milestones)," Singh said. She argued the company has not obtained the completion certificate from the monitoring committee till date. The committee certifies whether a building is technically fit for occupation.
The counsel for Emaar-MGF contended that DDA's act of encashing entire bank guarantee was illegal.
The DDA had issued a notice to the firm to deposit only R 83.70 crore as damages and given it seven days to deposit the money but seizing the bank guarantees showed the housing body was involved in fraud, the counsel argued.