New Delhi:The CBI on Wednesday started its probe into the alleged irregularities in Rs 766.89-crore bailout package given to Emaar MGF by the Delhi Development Authority in the construction of 1,168 flats in the Commonwealth Games village.
Though the agency did not name any official of DDA, the probe names Emaar MGF in the preliminary enquiry filed on Wednesday in connection with the alleged irregularities "in the valuation process of the bailout package," the CBI sources said.
After getting contract for building Commonwealth Games 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.
The Shunglu Committee found that the negotiation committee, set up with the approval of Lieutenant Governor, could not reach a mutually acceptable sale price with the developer Emaar MGF.
"Emaar MGF, then addressed a letter to LG dated April 22, 2009 stating their readiness to accept a rate of 11,000 per square feet which was endorsed with alacrity on April 24, 2009 at a meeting chaired by LG, attended by Secretary and Joint Secretary, Ministry of Urban Development, Vice Chairman, DDA and Finance Member and Engineer Member, DDA," the report said.
The committee chaired by former Comptroller and Auditor General on the instruction of the Prime Minister questioned the locus standi of the group to take such an important decision.
"It is surprising that such a decision was not taken by the competent authority - DDA. Such a major decision with large financial implications, not being taken by the competent authority, renders it suspect. It was referred to the Authority only in June 2009 after the Bailout Agreement had been signed in May, 2009," the report had said.