The bailout package for the Commonwealth Games village project, prepared by Delhi Development Authority (DDA), seems to have hit another roadblock.
The package was necessitated after Emaar-MGF, the project developers for the games village, wrote to the DDA in December last year saying they had run into financial trouble following the economic slowdown and the failure to get bookings for its flats.
It had asked the DDA for a monetary assistance for the project’s completion. The development authority had decided to buy a portion of developer’s share of flats coming up at the games village. It had subsequently formed a four-member valuation committee to valuate the actual price of the flats.
Sources in the government said that the committee — which submitted its report last week — has worked out a rate, which is not agreeable to the developers. “We are trying to negotiate with the project developers. We are hopeful something will work out,” a senior government official said.
The official added, “While Emaar-MGF, the project developers had sold the flats between Rs 12,500 to Rs 13,500 per sq. ft., the rate that has been worked out by the committee is approximately 30 per cent less than this. The developers have not given a very positive response.”
Government officials, however, defend the figures submitted by the valuation committee. “The committee which has representatives from Housing and Urban Development Corporation, Central Public Works Department, National Buildings Construction Corporation Company arrived at the figures after several round of consultation. All of them are in the
construction business and have a good idea about construction cost,” the official added.
When contacted Emaar-MGF spokesperson, however, said, “We are not aware of contents of any such report. We are in talks with DDA to explore various funding options.”
Emaar-MGF had told DDA that they would need an additional Rs 1000 crore to complete the games village. Coming up along NH-24, the village will accommodate 8,500 athletes and delegates who are expected to participate in the games.
Delhi Lieutenant Governor Tejendra Khanna in a meeting on March 13 had directed DDA to give an interim payment of Rs 100 crore to the developers till such time that a final bailout policy was not finalised.
But DDA failed to deliver on the grounds that making interim payment won’t be a feasible option in the absence of proper bank guarantee.