SBI accused of collusion with builder Emaar-MGF

The row over irregularities in Commonwealth Games Village construction took a new twist with the DDA accusing State Bank of India of “colluding and conniving” with builders Emaar-MGF to ensure non-encashment of bank guarantees.

The row over irregularities in Commonwealth Games Village construction took a new twist with the DDA accusing State Bank of India of “colluding and conniving” with builders Emaar-MGF to ensure non-encashment of bank guarantees.

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The Delhi High Court has sought an explanation from the bank by November 29 as to how could they issue two separate pay orders of Rs 90 crore and Rs 60 crore when there was only one bank guarantee. While the bank credited to Delhi Development Authority’s (DDA) account the pay order for Rs 90 crore, it had not done the one of Rs 60 crore.

DDA statements came during the hearing of a petition by Emaar-MGF, seeking to restrain DDA from seizing the bank guarantees of R183 crore as damages for not completing the project on time. The urban ministry had ordered confiscation of the amount furnished by Emaar-MGF as bank guarantee and initiation of legal action against it for recovery of other expenditure for “deficiencies” and “delays” in construction.

Additional solicitor general of India Indira Jaisingh and DDA standing counsel Ajay Verma questioned the October 25 stay of the court on encashment of R183 crore apart from what has been already encashed.DDA said it should be deemed that R60 crore also had been encashed as pay orders had been issued.