The Delhi Development Authority (DDA) has not incurred any loss but actually gained in the process of purchasing the Commonwealth Games Village flats from private developer Emaar MGF, the agency said on Wednesday, clarifying to media reports.

It said in a statement that it will be “gaining substantially if the flats are sold today at the prevailing rates. The cost may further go up by the end of December 2010 when the flats will be actually available for sale/occupancy.”

The decision to purchase flats at the rate of Rs.11000/- per sq.ft. was taken in consultation with the ministry of urban development after taking all options into consideration and also after studying the cost of inputs etc. as per laid standards, DDA said.

It also refuted the allegation of an extra expenditure of Rs 29.24 crore by saying that a valuation committee was formed with representatives from CPWD, NBCC, HUDCO and DDA to determine the price of the flats. It claimed that the committee with the assistance of technical and financial experts recommended that purchase price could be fixed between Rs 9382 and Rs 9720. The price did not include the developer’s margin in the cost recommended. 

On being apprised of these facts the developer’s margin was added and the cost of Rs 11000 per sq ft was fixed by the Evaluation Committee and approved in a meeting  at the highest level in which the Lt. Governor, urban development secretary, urban development joint secretary, DDA and all  stakeholders were present. Thus decision to purchase flats at Rs.11000/- per sq.ft. was a conscious decision in which the central government was also involved, the statement added.

DDA has also said that the granting of loan was not an option “thus DDA was left with no alternative except to go in for a straight purchase of flats.  A conscious decision regarding the same was taken at the highest level.”