Emaar MGF could be penalised for ‘irregularities’

Emaar MGF, a joint venture between Emaar Properties of Dubai and MGF Development Limited of India, could be penalised this week due to “irregularities and “deficiencies” found in the construction of Commonwealth Games Village, media reports said.

CWG Village was built by Emaar MGF.

Delhi Development Authority alleged that that there were various "irregularities" and "deficiencies" in the construction of 38 towers of the Village and the builder even exceeded the permissible limits of construction, Times of India reported quoting news agencies. It cited unnamed sources in the report.

DDA submitted its report in response to Urban development minister Jaipal Reddy's letter to DDA on October 7 asking for a report on the alleged irregularities after several foreign delegates said the place was "unlivable" and "filthy".

"The report is under examination in the ministry. The ministry is likely to give a direction to DDA in the matter shortly," the sources said, indicating that some penal action could be taken against the builder within a week.

The sources said there are "adequate provisions in the agreement" with the builder to take action against it for faulty execution of the project. These could be confiscation of security deposit or blacklisting of the company, they said.

In the letter, Reddy had said the allegations had adversely affected the image of DDA.

There have been reports of delay as well as deficiency in the execution of the project which not only adversely affected the image of DDA but also the Commonwealth Games as a whole," the report said quoting Reddy’s letter.  The letter was written during the Games.