Wednesday 12 January 2011

gulfnews : Emaar MGF's guarantee money withheld by court

An Indian court on Monday asked two state-run banks to deposit the Rs930 million (Dh75.68 million) bank guarantee of real estate giant Emaar MGF for constructing the Commonwealth Games (CWG) village with its registrar general till the disposal of a case relating to incomplete work at the site.

The Delhi High Court asked the banks to cancel two pay orders — Rs600 million by the State Bank of India (SBI) and Rs330 million by the State Bank of Patiala (SBP) — to be issued to Delhi Development Authority (DDA) for encashment, and deposit the amount with the high court registrar general.

The court had on October 25, 2010, while approving the Rs900 million partial encashment of the bank guarantee by DDA, asked the housing body not to encash the entire amount totalling Rs1.83 billion.

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