Active Stocks
Thu Mar 28 2024 14:39:26
  1. Tata Steel share price
  2. 156.40 2.32%
  1. HDFC Bank share price
  2. 1,457.95 1.20%
  1. ITC share price
  2. 431.35 0.78%
  1. Power Grid Corporation Of India share price
  2. 279.00 2.93%
  1. State Bank Of India share price
  2. 758.75 3.36%
Business News/ Money / DDA to buy 333 flats in Games Village for Rs700 cr
BackBack

DDA to buy 333 flats in Games Village for Rs700 cr

DDA to buy 333 flats in Games Village for Rs700 cr

Bailout: The site of the Commonwealth Games Village in New Delhi. Emaar MGF, which is developing the project in partnership with DDA, has been unable to sell the flats according to plan. Rajkumar / MiPremium

Bailout: The site of the Commonwealth Games Village in New Delhi. Emaar MGF, which is developing the project in partnership with DDA, has been unable to sell the flats according to plan. Rajkumar / Mi

New Delhi: The Delhi Development Authority, or DDA, will purchase 333 flats for around Rs700 crore in the Commonwealth Games Village in an effort to bail out cash-strapped real estate developer Emaar MGF Land Ltd. The firm is developing the village, scheduled for completion by the end of 2010

Bailout: The site of the Commonwealth Games Village in New Delhi. Emaar MGF, which is developing the project in partnership with DDA, has been unable to sell the flats according to plan. Rajkumar / Mint

Of the total 1,168 flats, Emaar MGF was supposed to sell 768 flats at market rates in late 2011 and the rest were to be sold by DDA after the games at lower prices. Emaar MGF was to fund the construction through the sale of flats. Bookings opened in 2008.

The firm has so far sold around 260 flats.

The amount towards the cost of the apartments will be released in instalments and has been linked to various stages of completion of flats, the statement said.

“The DDA’s decision to invest in the Games Village is a very positive development," an Emaar MGF spokesperson said.

According to the DDA statement, due to non-sale of flats, Emaar MGF had asked DDA for a loan of Rs1,000 crore. However, it added, at no point had DDA agreed to a loan.

Earlier, a committee consisting of officials from the Central Public Works Department, Housing and Urban Development Corp. Ltd, National Buildings Construction Corporation Ltd and DDA was formed to decide on the bailout package to be given to Emaar. Subsequently, DDA has decided to buy flats rather than give a loan.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 11 May 2009, 11:21 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App