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The CAG was apparently unhappy with the DDA for the Rs 700-crore bailout package given to the developer last year. The report said that though DDA’s original agreement with the developer did not include any clause for financial assistance, the authority stepped in to bail out the company saying the project was an issue of national prestige.
Moreover, DDA paid Emaar-MGF more than what its own evaluation committee had recommended as the cost of the flats resulting in avoidable expenditure of Rs 89.24 crore, the report said. As per the agreement, the financing risk was with the developer, who was responsible for arranging funds.
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