‘Accepting lesser rent is no favour’

• Do you think there’s a conflict of interest when as Finance Minister, a senior executive of a company being probed by the CBI lives in a house that you own?

Sinha replies:

‘‘I do own a single storey house in sector 15 A, Noida which as you have correctly said is also reported in my statement of assets filed with the Prime Minister. Since September 1997, the house was occupied by one Shri Rakesh Jinsi who worked for a private company called Hero Puch and then M/s Bhukhanwala Tools Ltd.

‘‘He paid a rent of Rs 50,400 per month. He vacated the premises on April 15, 2001. Since I did not need the premises immediately, I advertised for renting it out through Hindustan Times and The Times of India. I also put a TO LET sign board in front of the house. I was approached by few brokers in response to the advertisement and the TOLET sign on behalf of various clients. Finally, I decided to rent it out to one Shri Amitav Ray who I was told was shifting from Kolkata to Delhi.

‘‘The lease deed has also been signed with him effective 1st July, 2001. Shri Amitav Ray is also responsible for payment of rent. The rent fixed at Rs 50,000 per month which is less than Rs 50,400 which was paid by the previous tenant. I would like to point out that the earlier tenant did not have the use of the basement while Shri Amitav Ray also occupies the basement. I had to settle for lesser rent because of the depressed rental market in Noida. I may also mention that when the previous tenant left the house, the house remained vacant for two and a half months.

‘‘I do not have any telephone connection at the Noida house. I have no idea about either the telephone connection or the bills mentioned in your letter.

The question of conflict of interest has been raised from time to time in my case. You may be aware that I have already clarified the issue of ‘conflict of interest’ in my statement in both Houses of Parliament. I will just like to add that question of conflict of interest will arise if a favour is sought and accepted which can influence decision-making.

‘‘You will appreciate that in the present case, accepting lesser rent than what I was getting before and that too for a larger accommodation cannot be construed to be a favour by any stretch of the imagination.

‘‘I may also add that throughout this period the various agencies of the Finance Ministry have taken action with respect to Flex Industries whenever and wherever such action has been warranted and their freedom of action has not been influenced by me in any manner.

‘‘I may also assure you that I have been brought up in a tradition where I shall not flinch from taking or allowing others to take appropriate action even if it involves people nearest and dearest to me. It is not for the first time that I am in a position of authority.

‘‘I was a member of the Indian Administrative Service for over 24 years and held some very important and sensitive assignments. All throughout, I have never allowed any conflict of interest to cloud my judgement as far as the call of duty is concerned.’’