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Probe ordered into Centaur Hotels deal |
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Accepting the demand from Left parties, the Government has announced that an inquiry will be held into the disinvestment of the two Centaur hotels in Mumbai. Making the announcement in Parliament, Finance Minister P. Chidambaram said the Government has decided to order an inquiry after examining the report of the Comptroller and Auditor General on the sale of the two hotels. Chidambaram said the nature and scope of the inquiry is under consideration and will be announced in due course.
Chidambaram’s suo moto statement followed pressure on the Government for a CBI probe into the past disinvestment cases. The Left parties had taken up the issue with the Prime Minister at a meeting on May 12. The issue also got the backing of UPA Chairperson Sonia Gandhi, who endorsed the demand for a probe into all disinvestment decisions of the Vajpayee Government. Arun Shourie, who was Disinvestment Minister at the time of the sale of the Centaur hotels in Mumbai, has said that he is prepared to face any inquiry and denied any wrong doing. He described as completely wrong the allegation that he had put pressure on banks to lend money to Ajit Kerkar for buying the hotels.
The CAG report had criticised the procedures and valuation process adopted in the disinvestment of the Centaur hotels in Mumbai. The report said that the sale of the two hotels was finalised on the basis of single bids without the benefit of competitors. It said there were inconsistencies in procedure and there were relaxations and deviations offered to the sole bidder that lowered the value of the properties.
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