CVC ask DDA to file report
The Central Vigilance Commission’s Chief Technical Examination Wing has asked the Delhi Development Authority (DDA) to submit a detailed report and explain why its hotel projects related to Commonwealth Games failed to take off. It also wants to know whether or not the builders involved in construction of the hotels were availing of the tax benefits extended to them for making their projects viable.
Reliable sources in the commission told this newspaper that the civic agency has been asked to submit documents related to the hotel projects by Monday next week.
“We have found corruption and other procedural irregularities in many Games-related construction projects, including the DDA luxury Hotels Project. After thorough examination, we have written a letter to all concerned agencies including the DDA to submit a detailed report,” a senior CVC official said.
While the CVC is re-examining all the tenders and procurement process related to the DDA luxury hotels projects, the CVC officials have so far refused to reveal the extent of financial irregularities in the project. The CVC had also found that the tender rates were jacked up.
Earlier, in the wake of the Commonwealth Games, the DDA had auctioned a large number of plots on which hotels under various star-categories were supposed to come up. However, out of the 39 plots that were auctioned, only four hotels had come up by April and a few more were nearing completion now. But, on at least 13 plots, the work could simply not be started. These hotels were supposed to provide accommodation for tourists that were expected in large numbers. In order to make these projects viable, the government had announced certain tax holidays for five years. However, the catch was that the structures will have to be completed before the Games. The CVC wants to know whether or not the builders involved in these projects were availing of the tax benefits without providing rooms. Incidentally, it was due to the failure of the hotel projects that the scheme to re-develop nearly 3,000 flats at Vasant Kunj was put forward.
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