New Delhi/Dubai: 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.
Emaar MGF has filed an appeal challenging the order of a single judge bench dismissing its plea for restraining DDA from seizing its bank guarantee as damages for not completing the project on time.
DDA had proceeded to seize the bank guarantee on a directive of the urban development ministry. The ministry had also asked DDA to initiate legal action against the real estate giant for recovery of other expenditure for "deficiencies" and "delays" in construction of the Games Village.
