Arun Shourie slams CBI for launching probe into disinvestment of Laxmi Vilas Palace

NEW DELHI: Former disinvestment minister Arun Shourie has slammed the Central Bureau of Investigation ( CBI) for launching a probe into the disinvestment of Udaipur’s Laxmi Vilas Palace Hotel in 2002 during the tenure of the BJP-led National Democratic Alliance government.

Questioning the decision of the agency, which suspects that the 54-room heritage hotel’s sale price of Rs7.52 crore was much below its market value, Shourie told ET, "This seems to be an endless thing...after 12 years, a government decision is being questioned. Things are becoming ungovernable.... which civil servant will take a decision in such a scenario?"

The CBI had been similarly pursuing a probe into the strategic sale of Hindustan Zinc to Sterlite Opportunities & Ventures Ltd by the NDA government in 2002 and questioned him, Shourie said. He also pointed to the inquiries being faced by other civil servants such as the former Sebi chief CB Bhave, who is set to be questioned by the CBI for alleged irregularity in granting permission to MCXSX, a move much criticised by former IAS officers.

"Bhave is being probed by CBI...so is Mr Pradeep Baijal (former chief of Telecom Regulatory Authority of India) who is right now admitted in ICU. In such a scenario, why would a civil servant risk his reputation by taking any decision?" Shourie asked.

The CBI confirmed on Tuesday that it had lodged a Preliminary Enquiry (PE) some days ago into the disinvestment of ITDC’s Laxmi Vilas Palace Hotel in Udaipur and it has named as suspects the hotel’s buyer, Bharat Hotels Ltd, along with a private valuer and an advisor to government. Shourie or the chief managing director of Bharat Hotels, Jyotsna Suri, have not been named in the PE but their role may be probed, a CBI official said.

"Unknown others have been mentioned in the PE," the official said, adding that the agency has sought documents regarding the disinvestment. As per the PE, the Cabinet Committee on Disinvestment, in its meeting held on February 5, 2002, approved of the disinvestment of the hotel and Bharat Hotels made the highest bid of Rs7.52 crore.