This would, in turn, delay the repayment of the loan. That was when DDA decided to purchase the flats and set up a price-fixation committee to decide the rates.

The final price

As reported by this newspaper on May 6, the four- member price fixation committee in its report recommended that the flats ought to be purchased at a price anywhere between Rs 9,382 and Rs 9,720 per sq. ft. On May 11, the DDA announced that it would purchase 333 flats from Emaar at the rate of Rs 11,000 per sq ft. According to the brief submitted by the DDA, the Vice-Chairman of DDA, A K Nigam, set up a three-member negotiation committee to consider the price fixation committee’s report and negotiate a final price with the developer.

The negotiation committee, headed by Nand Lal, finance member, DDA, concluded “that the Project Developer’s margin and the cost of parking had not been considered by the price fixation committee,” and hence raised the final price to Rs 11,000 sq.ft.

DDA released the first installment of Rs 200 crore to Emaar-MGF on May 6 and has linked the future installments to completion of the project.

* 2nd installment of Rs 150 crore on or before June 15, 2009

* 3rd installment of Rs 150 crore on or before July 31, 2009

* 4th installment of Rs 150 crore on or before September 30, 2009

* 5th installment of Rs 116.89 crore on or before November 30, 2009