The DDA also considered whether it would “terminate the agreement and develop the project by itself.” This too was considered unviable as the DDA would have to give the project developer one month notice after the date of the fourth milestone, July 30, 2009.

“DDA would have been left with no time to execute the project on its own as calling for fresh tenders would have taken a lot of time and it would have been impossible to complete the remaining work by the deadline of March 31, 2010,” the brief says.

Perhaps the most astonishing option considered by the DDA was “to revoke the Project Development Agreement and find alternate venues for accommodating the participants.”

The brief says that this option too was considered unviable because it was only due to the “severe dearth of hotels in Delhi and NCR,” that the project was being developed in the first place.

Mode of financing

Once the decision was made to bail out Emaar-MGF, the DDA considered whether it should give a loan to the troubled developer instead of purchasing the flats. There was, however, a unanimous decision against providing loans because, “there was no security that the project developer could provide, as the land already belonged to the DDA and repayment of the debt and interest by Emaar-MGF was considered doubtful.”

The DDA was also of the opinion that if given a loan, Emaar-MGF could decide not to push the sales of the apartments till a more opportune moment in the realty market.

... contd.