The government on Thursday put up a stout defence of the controversial Rs. 766-crore bailout package to Commonwealth Games Village developer Emaar-MGF even as vigilance sleuths unearthed alleged discrepancies by the Delhi Development Authority in some purchases for the Village.
Amid allegations of deficiencies in the Village, a Parliamentary Committee is set to visit the site on November 3 for assessment of the work done there and present its report to the Lok Sabha during the coming winter session.
“Win-win situation”
With the bailout package receiving flak, Urban Development Minister S. Jaipal Reddy said basically it was a “buyback arrangement” that led to a “win-win” situation for the DDA.
Emaar-MGF also came in for continuing attack with the government saying it had delayed the Games Village project by five months and undertook constructions which were beyond the agreement.
“It was not bailout but the buyback arrangement in which the DDA made a profit of about Rs. 350 crore,” Mr. Reddy said. “It is a win-win situation for the DDA as out of total 1,168 flats, it has got 711 flats at its disposal,” he said.
The financial package has come in for criticism as it has been felt that taxpayers' money has been used to help the private builder.
The Central Vigilance Commission found alleged discrepancies in the purchase of air-conditioners, furniture and kitchen equipment for the Games Village by the DDA.
