DDA seals 2 buildings of Emaar MGF at CWG village

New Delhi: Two days after the CBI filed FIR against the Emaar MGF properties in Delhi and Hyderabad, the Delhi Development Authority (DDA) has sealed two buildings at the Commonwealth Games village in the capital.

The DDA said Emaar MGF broke building rules during constructions.

The action comes after the CAG report on the Commonwealth Games charged DDA for favouring Emaar-MGF, an allegation the organisation has denied.

According to the Shunglu panel report, the total loss to the exchequer because of corruption and delays was Rs 220 crore. Emaar MGF, the developers of the games village, indicted for causing loss to the exchequer.

The company sold 333 flats at a higher price. The overall price was hiked from Rs 134 crore to 222 crore.

Unauthorised payments made to Emaar MGF, contrary to project development agreement, to the tune of Rs 64 crore, said the report.

While non-levying of liquidation damages leads to a loss of 81.45 crore, carriage cost of unsold apartments was estimated at Rs 35 crore to Rs 40 crore per annum.

The report also fixed the responsibility on Leiutant Governor Tejinder Khanna, ex-officio chairman of DDA; Ashok Kumar, vice chairman, DDA; Nand lal, Member Finance; AK Bajaj, former member, engineering and M Ramachandran, former secretary, Urban Development who played a key role in determining bail out package for Emaar MGF.

The report also recommended the Government to take action against all public servants named and involved.

Governance structure of DDA will also be examined, particularly to determine why lieutenant governor should be the ex officio chairman.

The report also recommended action against Emaar MGF for acts of omission and commission and has asked for a detailed probe by income tax.

The questions must be asked about why a bail-out package of Rs 728.89 crore was given to Emaar MGF by DDA. Emaar MGF presented a hiked price of Rs 11,000/sq ft instead of the original price of Rs 7,829/sq ft.

The Shunglu Committee was formed by the prime minister immediately after the commonwealth games ended. Its terms of reference included investigating weaknesses in management, alleged misappropriation, irregularities, wasteful expenditure and wrongdoing in the conduct of the Games, and, recommending action on the same.