DDA ducks RTI on Rs 6,000 cr convention centre

GovernanceNow; Danish Raza; New Delhi; December 08 2010,

It has been more than a year since the project worth Rs 6, 000 crore to build a convention centre in West Delhi’s Dwarka area, was scrapped. However, the Delhi development authority (DDA), the civic agency concerned with the project, is unperturbed about the losses it incurred following scrapping of the project.

The DDA has informed this responding to the RTI application filed by Dwarka resident C K Rejimon filed RTI application with the DDA.

Among other things, the applicant sought the total damage to DDA and state exchequer on account of delay and withdrawal/cancellation by DLF for the project. To this query, the reply said “not available”.

To the query regarding the procedure set up by DDA to recover the damage and loss from the contractor DLF, the reply, again, was “not available.”

In March 2009, there were reports in the media that after successfully getting the bid, DLF wanted to rope in foreign partners. However, the DDA did not allow this resulting in DLF stopping the work.

“We are ready to revisit the project if we are allowed to rope in foreign partners for funding, including private equity players.” DLF group chairman KP Singh told the Indian Express.

DDA’s RTI response on this specific issue is confusing. The civic agency has admitted that the lease deed had restriction on contractors funding partnership changes and holding, but says that it did not deny permission sought by DLF on foreign funding and exemption.

The civic agency has also said that the lease deed has not been executed as the required documents were not submitted by the DLF Ltd.

This, despite the fact that the earth was moved and work had begun on the proposed construction site.

The contract to build the centre worth Rs 6, 000 crore was awarded to DLF- the sole bidder.

The company had paid Rs 901 crore to DDA for the project which was to commence in July 2007.

However, in November 2008, DLF applied for refund of the amount.

The project was announced in union budget 2007-08.

The convention centre, reportedly, the biggest in the country, was to have hotel and commercial complexes, integrated built-up area with convention and exhibition complex.