With stocks of the firm falling since October last year as a result of the global financial meltdown, the Dubai-based real estate firm had reportedly written to the Delhi Development Authority (DDA) citing difficulties in selling the residential flats after the Commonwealth Games as it was facing a financial crunch. While DDA officials refused to comment on record, sources confirmed that the firm had asked the DDA for a loan to tide over the crisis. The DDA is reportedly looking into the matter although taking a financial loan might be against the contract agreement, sources said.

However, denying all reports, a spokesperson of Emaar-MGF said, “The response to the bookings of apartments has been good and we have sold over 80 per cent of the apartments launched in the first phase...work at the Games Village is progressing as per schedule with adequate finances, as it is funded through a healthy mix of equity, loans and customer receipts.”

The Games Village is being developed on the public-private-partnership model, in which the private developer is not only in charge of constructing the flats but also responsible for selling two-thirds of the apartments. The Village is expected to be developed into a private residential estate once the Commonwealth Games are over.

The flats to be sold by the real-estate firm are worth around Rs 2 crore and with the site also facing legal trouble, sources said that the developers were facing a shortage of buyers.