Emaar MGF Demands Money From DDA For Commonwealth Games Apartment Project

Published: April 21, 2009 at 12:05 PM | Author: Administrator
News Source: Indian Realty News

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Real estate firm Emaar MGF Land Ltd has asked the Delhi Development Authority (DDA), the agency that oversees urban development in the national Capital, for Rs 800 crore upfront for the apartments it is building at the Commonwealth Games Village, according to people familiar with the development at the construction site of Commonwealth Games Village 2010 in New Delhi. Given the realty slump, Emaar MGF has been finding it difficult to attract buyers for its apartments.

Emaar MGF had won the rights from DDA for Rs 321 crore to develop and sell 800 flats out of the 1,168 it is building at the site in a project considered to be of national importance. DDA has the marketing rights for the remaining apartments. DDA has set up a committee to decide on the fair valuation of the apartments, the people said. At whatever rate per sq. ft is decided by this committee, Emaar MGF is willing to hand over the proportionate number of flats for Rs 800 crore, they said. This development follows the breakdown of talks with DDA for a Rs100 crore loan for which it, in return, had sought a bank guarantee of Rs100 crore, an indefinite corporate guarantee and 75 flats.

Athletes taking part in the 2010 edition of the Commonwealth Games will be staying in the village. DDA has set up a committee to decide on the fair valuation of apartments at the site given the realty slump that has caused property prices and land valuations to dip; Emaar MGF has been finding it difficult to attract buyers for its apartments at the site. In addition, environmentalists had taken DDA to the Delhi high court in 2007 to stop construction at the village site which they said was too close to the Yamuna River; in an interim order the court ruled that customers should buy an apartment at their own risk. Emaar MGF first asked DDA for financial assistance in December.