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| CWG: CBI starts inquiry in bailout given to Emaar MGF |
| Press Trust of India / New Delhi Feb 22, 2012, 21:07 IST |
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The Central Bureau of Investigation (CBI) today started its probe into the alleged irregularities in Rs 766.89-crore bailout package given to Emaar MGF by the Delhi Development Authority (DDA) in the construction of 1,168 flats in the Commonwealth Games (CWG) village.
Though the agency did not name any official of DDA, the probe names Emaar MGF in the preliminary enquiry filed today in connection with the alleged irregularities "in the valuation process of the bailout package," the CBI sources said.
After getting contract for building CWG Village at Akshardham, Emaar MGF cited slowdown in the real estate sector and its inability to raise resources to ask for financial assistance from DDA.
The Comptroller and Auditor General in its report had said that DDA had extended a bailout package worth Rs 766.89 crore in the form of procurement of 333 apartments at the rate of Rs 11000 per square feet on the ground that the project was of "national prestige and was to be completed in time".
When contacted, Emaar MGF spokesperson said they have no knowledge of any such inquiry.
The high-level committee chaired by VK Shunglu, former Comptroller and Auditor General, also raised question marks on the valuation procedure followed to issue the bailout package to Emaar MGF.
"DDA formed a Valuation Committee which, in turn, appointed two independent consultants to determine fund requirement of Emaar MGF and the value of apartments [in March 2009] for arriving at the number of additional apartments to be purchased by DDA," the Shunglu report said.
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