CWG: Centre cracks whip on builder

NEW DELHI, OCT 20
The Rs.183 crore bank guarantee furnished by Commonwealth Games Village builder Emaar-MGF was on Wednesday ordered to be confiscated on charges of irregularities, as the ED prepared to question top officials of the OC for alleged foreign exchange violations.
A Rs 760 crore bail out package given by Delhi Development Authority (DDA) for Emaar-MGF, a private builder, also came under the scanner, sources said.
As the multi-pronged probe into alleged corruption and financial irregularities in the Games scam gathered momentum, the Comptroller and Auditor General (CAG) seized files relating to various construction works carried out by CPWD and DDA.
Official sources said the Enforcement Directorate (ED) is likely to issue summons to top OC officials including Secretary General Lalit Bhanot in a case of alleged foreign exchange violation related to the Queen Baton Relay in London. Bhanot said he has not received any summons by the ED.
Cracking the whip, the Government ordered legal action against the private builder Emaar-MGF after the DDA detected “irregularities” and deficiencies in the Games Village.
The direction for confiscation of the Rs 183 crore bank guarantee was given by the Urban Development Ministry to the DDA which had given the contract to the builder, ministry sources said.
The Government action came a day after DDA submitted an interim report to the UD ministry in which it said there were “various deficiencies” and “irregularities” in construction of the Village and the builder had exceeded the permissible limits of construction.
Emaar-MGF on its part said the Village was built to the “highest standards of quality and design” and all the pertinent milestones were achieved as per their scope of work.
The company also said all deficiencies pointed out by DDA or any other agency was duly rectified by it.
The bail out package was provided by DDA which purchased 333 flats from Emaar-MGF. The package was said to have been worked out by the Delhi’s LG, who is the Chairman of the DDA, and was cleared by the Centre.
BJP leader Sudhanshu Mittal, whose premises were searched by Income Tax officials on Tuesday in connection with irregularities in CWG projects, meanwhile refuted corruption charges and accused the government of making him a “political scapegoat” and indulging in “witch-hunt”.
Regarding the likely summoning of the OC top brass, official sources said the ED wants to confront them with certain documents that it has laid hands on.
The ED has already registered a case under Foreign Exchange Management Act (FEMA) in this regard.