Click to play videoNew Delhi: The Commonwealth games village project in Delhi seems to be in trouble again. The developer, Emaar MGF, now faces a financial crunch and has written to the DDA, seeking a loan.
“After the economic meltdown they wrote to us saying they are in a liquidity crisis. We are going through the legal procedures we have with the company and accordingly take action,” says DDA spokesperson, Neemo Dhar.
Emaar-MGF is developing 1,168 flats for 8,500 athletes and delegates coming for the Games. Of these, Emaar-MGF will sell 778 flats and the remaining will be sold by the DDA after the Games. Bookings for these top-end flats were opened last year. Initial sales were good with 80 per cent of the 300 flats on offer in the 1st phase sold out.
But sources say in the last three months the company has managed to sell less than 10 flats resulting in a revenue crunch.
Emaar MGF, however, denies it is facing a financial crisis. A statement by the company said that construction is in full swing at the project site and progress is as per schedule, expected to be delivered by April 2010, as per agreement signed with DDA.
The DDA also says the construction at the Games Village is on schedule and that there won't be any delay.
It's been more than a month since Emaar MGF wrote to DDA asking for a loan. The DDA is yet to decide on it but insists work will go on. But with the recession hitting companies, the question is how.
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