Emaar-MGF fends its India commonwealth project

Emaar-MGF rejected allegations by the Delhi Development Authority (DDA) that its commonwealth project to house athletes and the game’s officials suffered irregularities, delay and construction defects.

“The Games Village has been built to the highest standards of quality and design. The Village was handed over to the DDA and the [game’s] Organizing Committee (OC) after a full inventory of facilities, items, and assets in June 2010,” a spokesman of Emaar-MGF told Alarabiya.net.

The spokesman added that the village was fully put to use during the recently concluded Commonwealth Games.

Emaar-MGF also said that it received “rave” reviews from all participants who stayed and used The Games Village complex.

“All deficiencies pointed out by DDA or any other agency was duly rectified by us. If there are any pending items, they shall also be done after the Village is handed over back to us by the Operating Committee (OC) and the DDA.”

Emaar-MGF rebuffed media reports that its bank guarantee was to be confiscated due to claims by Indian authorities that it delayed the project.

“The Bank Guarantee was extended till 31 Dec 2010, at the behest of DDA. It is incorrectly being reported in the media that the bank guarantee has been "confiscated". We have not received any notice for encashment of the bank guarantee as well.”

DDA has not yet calculated the penalty, a DDA spokeswoman said, but the amount will be deducted from the $45 million bank guarantee given by the developer.

But the Emaar-MGF spokesman said that all the project milestones were achieved per their scope of work.

DDA's spokeswoman also charged the developer for not rectifying defects despite being brought to its notice by the agency.

"Those were done by DDA subsequently. So we have to charge them for that also," she added.

The Indian joint venture of Dubai’s Emaar Properties has built the 63.5 hectares village, with costs mounting to $230 million.

“No dues are outstanding to any government agencies including the Delhi Jal Board & BSES,” Emaar-MGF’s spokesman said.

He also said that DDA purchased 333 apartments at a much lower rate compared to the existing market price at which Emaar-MGF was selling.

“We are yet to receive the full payment of the same. Additionally, we had also offered the DDA an option to buy back the apartments sold to them.”

India hosting the Commonwealth games for 2010 proved to be a major sporting success but an organizational embarrassment for the government.