Srinagar Centaur transfer to DB Group on hold

NEW DELHI: Aviation minister Vayalar Ravi has put on hold handover of the management of Srinagar's Centaur hotel to Mumbai-based DB Group, which is under investigation in the 2G scam. The decision to give the hotel's long-term management to a private firm was taken last September despite opposition from the J&K government and employees of the hotel.

Officials said the new aviation minister has ordered that the controversial deal should be put on hold, hinting at the possibility of the entire contract being reviewed in light of various allegations. The DB Group, whose promoter Shahid Balwa is in CBI custody for his alleged role in the 2G scam, is also under the scanner of intelligence agencies for alleged underworld links.

DB Group now holds a significant stake in Swan Telecom, one of the biggest beneficiaries of the 2G allocation that according to CAG may have cost the nation in the range of Rs 1.76 lakh crore. Swan Telecom offloaded 45% stake to UAE-based Etisalat at a massive profit. Investigators have now found trail of Rs 214 crore payment from DB Realty to Kalaignar TV.