Thursday 21 October 2010

gulfnews : India plans to confiscate Emaar-MGF's bank guarantee

Dubai-based construction company Emaar and its Indian associate MGF may have to forfeit Rs1.83 billion (approximately Dh175 million) for doing a shoddy work in construction of the Commonwealth Games Village.

The federal Urban Development Ministry has instructed the Delhi Development Authority (DDA) to confiscate Rs1.83 billion that the construction company Emaar-MGF had given in the form of the bank guarantee when the project was awarded to it.

However, the developer said in a statement sent to Gulf News that the bank guarantee (BG) was extended till December 31, 2010, at the behest of DDA and that it had “not received any notice for encashment of the BG”.

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