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The Comptroller and Auditor General (CAG) has said that “undue favour” was shown to Emaar MGF in the award of the contract for construction of Commonwealth Games residential complex. DDA allowed “several financial concessions” to Emaar MGF including revision of milestones and delay or non-levy of liquidated damages, it said. The report also noted that there had been Floor Area Ratio violation. The FAR constructed by the project developer substantially exceeded not only the sanctioned plan, but also the maximum permissible FAR under the Master Plan for Delhi 2021, it said.
“There was a series of misrepresentation and accommodations at the RFQ (Request for Quotation) and RFP (Request for Proposal) stage that resulted in Emaar MGF Constructions, which was not qualified in terms of pre-qualification criteria, emerging as an eligible and successful bidder through the consortium route,” CAG said in its audit report on the Commonwealth Games. While bids were received from Emaar MGF and DLF Ltd, the latter’s conditional bid was rejected without any interaction or negotiation. But DDA chose to engage in prolonged correspondence with its financial consultants, legal advisors and Emaar MGF, to find solutions to address deficiencies in its proposal, the report said. Finally, only Emaar MGF was declared technically qualified, and awarded the contract on the basis of a single financial bid, “thus denying DDA the benefit of financial competition,” it added. CAG has also frowned on the bailout package extended to the developer. It further said that the execution of the residential complex project, too, was plagued by several irregularities and deficiencies. Noting serious lapses in construction work, CAG also rapped on the knuckles of DDA for not taking adequate action despite a third party quality inspection agency continuously flagging deficiencies, with regard to quality of construction. DDA Showed Undue Favor to Emmar MGF in Awarding Residential Complex Contract: CAG |
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The Commonwealth Games Village finds itself embroiled in yet another controversy, with real estate firm Emaar MGF allegedly failing to pay tax dues of Rs 314 crore to the Delhi government.
The firm constructed the highend apartment complex with the Delhi Development Authority (DDA), under the public private partnership (PPP) model. The firm's failure to pay the Rs 314 crore VAT could further delay buyers from taking possession of the flats, as they remain unoccupied even 18 months after the Games concluded. ![]() An official said that there was a provision to attach the property and bank account of Emaar MGF if it fails to pay the amount in the stipulated time. 'The assessment order stating the exact amount of the dues was issued to the firm in the third week of February. They had one month to pay up, but haven't,' the official said. A spokesperson of the real estate developer refused to comment on the charges, saying the company would deal directly with the tax department. Only recently, the DDA had refused to grant a completion certificate to the flats built by Emaar MGF claiming that they had exceeded the Floor Area Ratio (FAR) by constructing extra flats. However, the certificates had to be given out following a Delhi High Court order. Emaar failure to pay Rs 314-crore VAT lands CWG Village in mess | Mail Online |
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If homebuyers are compared to athletes and the wait they endure for moving into newly bought flats compared to a race, these men are surely running a marathon.
But the good news is that the finish line seems to be near. Buyers of flats at the Commonwealth Games Village, who have waited for more than 16 months to move into their dream apartments, are set to be handed over their possession letters soon. The Delhi Development Authority (DDA), the building regulator in the Capital, has finally issued 'completion certificates' to 26 towers at the Games Village and is ready to auction the 700-odd flats it owns at the address. ![]() Builder Emaar-MGF, which constructed the flats, meanwhile, has started intimating buyers that the possession letters would be issued soon. The good news comes after a lengthy court battle waged by the buyers, helped in their fight by Delhi L-G Tejender Khanna. Situated beside the Akshardham Temple in east Delhi, the Games Village has 34 towers housing 1,168 flats, or roughly 34-35 flats in each tower. The buyers have paid between `1.8 crore and `4.8 crore for a flat, paying EMIs as high as `2-3lakh. Over that, they are also paying rent as they live as tenants in the city. The dispute was over six towers - 5, 12 (A), 15, 17, 31 and 34. The DDA had held back the completion certificates of towers 12 (A), 17, 31 and 34 because Emaar-MGF was sitting on dues it owed the civic agency. Towers 5 and 15 had extra floor area ratio. But for some reason, the DDA had refused to hand over the possession letters to all the owners. A buyer said now the DDA has to issue power of attorney to the builder for the registration of the flats. ![]() 'Before this, the DDA will also remove furniture from the flats, which have been lying unused since the Game finished in October 2010,' he added. In November last year, the DDA had sealed 64 flats in two towers. These flats belong to Emaar- MGF and had already been sold to buyers. The civic agency later de-sealed the flats after the buyers moved the high court. The CWG Allottees Welfare Association, representing the flat owners, had approached the high court against the DDA, saying it sealed the flats without waiting for the ministry's decision on the issue. In its petition, it said the allottees were suffering for no fault of theirs in the fight between the developer and the agency. And that instead of issuing the completion certificate to the developer, the agency had arbitrarily sealed the flats only in two towers. On February 7, the ministry of urban development had convened a meeting with the two parties on an order from the high court and it informed the civic body that it should settle the matter as it was the regulatory body. Thereafter, Tejender also held a meeting and directed the DDA to start the process of sorting the issue, raising the hopes of buyers that the dispute would end soon. Flouting of the floor area ratio (FAR) norms was another hurdle in getting the completion certificates. Wait over as residents prepare to move into the Village | Mail Online |
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Emaar MGF, the private developer of the Commonwealth Games Village, paid the contractual amount due to Delhi Development Authority (DDA) on Tuesday, paving the way for individual flat buyers to finally get their flats.
As per the contract between DDA and Emaar MGF, the developer had to pay an upfront amount of more than R16 crore to DDA. The developer, however, has now paid Rs 19.07 crore to DDA and is expecting a power of attorney from the land development agency. The Delhi high court, where a petition was filed by the flat owners association, had asked DDA on Monday if it was ready to issue power of attorney to Emaar MGF with respect to the 26 out of the 34 towers in the complex for which completion certificates have already been issued. Once Emaar MGF gets the power of attorney, it can execute sale deeds in favour of buyers. Emaar-MGF pays contractual amount to DDA - Hindustan Times “We have received the due payment from Emaar MGF and the power of attorney would be issued in a day or two,” said a senior DDA official who didn’t wish to be identified. “The power of attorney is being drafted and is being legally vetted.” “We have deposited an amount of more than Rs 19 crore instead of Rs 16 crore in the interest of individual flat owners, without prejudice to our rights and contentions, as per our statement in the Honourable high court to clear the contractual dues,” said a senior Emaar MGF official. |
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New Delhi: Commonwealth Games Village flats are now finally turning into ‘homes’. After much controversy and a legal battle, buyers of these luxury apartments are finally getting possession of their property. On Saturday, World Bank employee Shalabh Tandon was the first among the buyers to receive keys of his four-bedroom flat from project developer Emaar MGF.
According to officials associated with the project, more buyers are likely to take possession of their flats starting Monday after they pay the last installment and sign an indemnity bond. Tandon plans to move into his new house with his wife and two children in the next two months. He currently stays in Vasant Kunj but says nothing can beat residing in one of the best residential complexes in the country. “Lat year, we had to move the court to get possession of our flats. But finally it is happening now. Our Games Village flat is definitely a dream house,” said Tandon after taking the keys to his house on Saturday afternoon. “It is one of the prime properties in the city and has fabulous infrastructure and facilities. To my delight, the entire place has been maintained quite well. There was security in the tower and the home was also in good condition,” he said. DDA is removing furniture from flats before handing them over. He was keen on buying a house at the Village due to its location and infrastructure facilities. There are two swimming pools, one million gallon of water supply every day, wiffi enabled green buildings, wireless set-up for direct-tohome satellite TV channels, walking tracks and dedicated parking, Tandon added. “Unfortunately, the complex got a lot of negative publicity but it has a great location. You can reach Khan Market in 10 minutes using the Barapullah Road. There is Akshardham Temple on one side and Yamuna on the other. In the next three months, an RWA will take over and every owner may have to pay anything like Rs 5,000 per month to maintain the towers,” said Tandon, who will be living on the fourth floor in Tower 27. Buyers were keen on finding a solution for Towers 5 and 15 as their possession has been put on hold, probably till the high court takes a decision, said Tandon. The next hearing is scheduled on April 18. The Games Village was built to lodge international participants during the Commonwealth Games in 2010. Besides sports facilities, it has 1,168 flats of which nearly 450 flats belonged to Emaar MGF and the rest are with DDA. The private developer had sold nearly all flats in its share before the Games began for anything between Rs 2 crore and Rs 5 crore. However, buyers could not take possession even after a year of the Games getting over as DDA realized that Emaar MGF had exceeded the sanctioned floor area ratio. DDA had even sealed the two towers following which the buyers moved the court and the flats were de-sealed. Following court orders, DDA issued completion certificates to 30 of the 34 towers in the complex and also gave a conveyance deed to Emaar MGF on April 4 paving way for the possession to begin. Meanwhile, the urban development ministry is supposed to suggest a solution to the issue of excess FAR. “We want that the issue of towers 5 and 15 be resolved too. In fact, many buyers are now quite thorough with all building laws and the Master Plan of Delhi,” Tandon added. Article Window |
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