UAE companies in India get burned
The question is, were they holding the match? As the Indian President visits the UAE, Kipp asks what Etisalat and Emaar have been up to across the sea.
November 21, 2010 10:46 by Samuel Potter
Emaar’s India subsidiary is a partnership with MGF. The joint venture was the company charged with building the Games village for the athletes, which was criticized for being delivered late and unfinished or inadequate. The Delhi Development Authority says that Emaar-MGF failed to achieve project milestones in time and failed to pay bodies and agencies for utility services. For its part, Emaar insists Emaar-MGF provided adequate documentation as regular updates to the DDA which included “the fact that the authority’s contractors were causing damage and were not being supervised,” says Indian Express. Emaar-MGF says there are no outstanding dues to any companies or bodies, and that the Games Village has been built to highest standards.
Clearly, someone is trying to cover their behinds on this one; the ongoing battle surrounding a security deposit provided by Emaar-MGF ahead of the project may help clarify things when it finally comes to a close.
Until then the question is, have these companies got themselves into bother in India through mischief of their own making, or have they fallen victim to unscrupulous practices in a notoriously corrupt and murky business environment? Kipp would prefer to hear that it’s the latter, but we won’t be struck down with shock if it turns out to be the former.
According to Gulf News, “UAE companies and others have invested more than $5 billion in India through foreign direct and institutional investment, making the UAE one of the top investors there.” It remains to be seen if such high profile misdeeds will dissuade future UAE investment in India.
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