Jaipal defends Emaar-MGF bailout

Oct 22, 2010 - AGE CORRESPONDENT |

New Delhi

Amid questions being raised over the DDA extending financial help to the private developer EMAAR-MGF for completing the Games Village, which has been criticised for shoddy work, the Union urban development minister S. Jaipal Reddy on Thursday defended the deal between the DDA and the private developer of the Commonwealth Games Village. He said that it was not a “bailout package” but a “buy back” arrangement in which the DDA was set to make profits of more than `300 crores.
Mr Reddy said that there was no other way out to deal with the situation as the project had been going at slow pace and it was necessary to get the project completed in the interest of the Games. “It was not bailout, but the buyback arrangement in which the DDA made profit of about `350 crores,” the minister said, adding that it was win-win situation for the DDA as out of total 1,168 flats, it has got 711 flats at its disposal.
Talking to a television news channel, Mr Reddy said he was not consulted on the decision with regards to the deal, but supported the action taken by the DDA. “Though it was a desperate arrangement, fortunately the DDA will make a profit of more than `350 crores,” he said.
The minister also said that the agreement was signed between the DDA and the EMAAR-MGF on September 14, 2007. But later the project got slowed down because of the economic slowdown and difficulty in raising resources from the market.
To a query about how the private developers was earlier given a clean chit, the minister said that nobody had given it a clean chit.

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