The price fixation committee, constituted by the Delhi Development Authority (DDA) to look into the various funding options for the Commonwealth Games Village, has advised the DDA against buying 250 flats from developer Emaar-MGFs share to help out the financially beleaguered realty major.
Instead, its report has asked DDA to consider loaning the developer Rs 500 crore at an interest of 12 to 13 per cent to complete the projects 1,168 flats.
The initial partnership between Emaar and DDA gives the developer rights to sell two-thirds of the 1,168 flats, while the rest were to be sold by DDA. Emaar was to use the money from the sale to build the Village. Due to little response from the market, Emaar had approached DDA to buy out 250 flats from its share, at a discounted rate, so that it could use that money to complete the project on time.
Source : expressindia.com
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