Probe into Centaur deal only after CAG report: Centre


Posted: Thursday, May 05, 2005 at 0001 hrs IST
Updated: Thursday, May 05, 2005 at 0001 hrs IST


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New Delhi, May 4: Observing that the then disinvestment minister Arun Shourie may have taken “active interest” in the divestment of Juhu Centaur Hotel in Mumbai, the government on Wednesday indicated that it would consider an inquiry into the issue only after receiving the final CAG report.

“On getting the CAG report, further action or further inquiry into the matter will be decided,” finance minister P Chidambaram told the Lok Sabha, responding to a strong plea by members, mainly belonging to Left parties, for a CBI probe.

Replying to a calling attention motion moved by CPI-M leader Basudeb Acharia on the disinvestment of the hotel, he said, “Surely it seems that the (then disinvestment) minister (Arun shourie) took active interest in the transaction.”

Mr Chidambaram said the government was waiting for the final report of the comptroller and auditor general (CAG) which was expected “very shortly”.

Pressing for the immediate scrapping of the deal, the Left demanded that a CBI inquiry be initiated into the “fraudulent” transaction in the hotel’s disinvestment process, including Mr Shourie’s role in it.

CPI-M leaders Basudeb Acharia, Rupchand Pal and Nilotpal Basu told the media here that they were not averse to the FM’s proposal to initiate a CBI inquiry into the issue after the final CAG report was submitted. But they said there was enough “prima facie material available for a CBI inquiry without waiting for the CAG report.”

Mr Acharia alleged that the then disinvestment minister had shown undue interest and haste in processing the disinvestment of the Centaur Hotel.

Quoting figures, he demanded to know how the hotel, which had been valued at Rs 146 crore, was acquired by former Air-India board member Ajit Kerkar for Rs 101 crore only, and within six months of the sale, the price increased to Rs 380 crore.

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