Emmar-MGF fmay forfeit Rs183 crore for shoddy work at CWG village

The government is likely to take punitive action against real estate developer Emmar-MGF for shoddy execution of the project for the development of the Commonwealth Games Village.

Urban development minister Jaipal Reddy is reported to have directed the Delhi Development Authority (DDA) to submit a report on the issue and the DDA, in its interim report, has cited "irregularities" and "deficiencies" in the work done by the company.

EMAAR-MGF may have to forfeit Rs183 crore it deposited with the government of India as a bank guarantee. DDA is also likely to take further legal action against Emaar-MGF for recovery of damages over and above the bank guarantee, sources said. (See: Emaar-MGF takes first hit in CWG blame game)

Emmar-MGF has been entrusted with the work of constructing 1,168 flats in the Games village costing Rs1,000 crore and the developer has been under the scanner for failure to execute the project efficiently and in time.

The DDA, which functions under the union urban development ministry, had given the contract for building the village to Emmar-MGF.

Several foreign delegates had criticised the village as "unlivable" and "filthy" while the work to bring in some cleanliness had to be continued even after athletes and delegates started arriving for the games.