Panel seeks CVC probe into Centaur resale

A Parliamentary Standing Committee report has demanded a Central Vigilance Commission probe into the resale of Centaur Hotel in Mumbai.The s...

A Parliamentary Standing Committee report has demanded a Central Vigilance Commission probe into the resale of Centaur Hotel in Mumbai.

The standing committee on transport, tourism and culture, which tabled its report in the Parliament today, had looked into ‘‘the resale of the Centaur Hotel, Mumbai Airport, by Batra Hospitality Private Limited to the Sahara Group within 6 months of acquiring the hotel from the Government’’. The committee, headed by Dipankar Mukherjee, comprised 15 Rajya Sabha and 29 Lok Sabha members.

The Batras had bought the hotel for Rs 80 crore and sold it to the Sahara Group for Rs 115 crore, making a hefty profit of Rs 35 crore. This had created a furore in the Parliament then on why the government itself could not sell the property at a higher rate.

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In its conclusion, the report states: ‘‘The Committee recommends that in light of the discrepancies brought out with regard to the selection criteria, reduction of turnover levy, rebidding process and the transfer of petrol pump, the government should order an inquiry into the entire transaction relating to Centaur Hotel Mumbai Airport by the Central Vigilance Commission.’’

The 50-page report adds: ‘‘The committee does not agree with the reasons advanced by the Ministry of Civil Aviation for treating the bid of A.L. Batra as valid.’’

On the reduction of turnover levy, aimed to fetch a better price for Centaur, the report states: ‘‘To get a better price for the benefit of Air India, the government has taken a route that led to a loss of revenue to another government company.’’

‘‘The Committee is of the view that the issue requires further clarification and investigation,’’ the report adds. It further states that the purpose of reduction in turnover levy ‘‘was defeated as only one bidder, that too the same for the earlier bid, remained in picture.’’

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The committee was also not ‘‘convinced’’ with the rebidding process and found the reply of the Ministry of Civil Aviation that ‘‘it is unlikely that any new bidder would have shown interest’’ as ‘‘not tenable’’.

Pointing at discrepancies in the selection process, the report states that the Batras being brought in as Special Purpose Vehicle for acquiring the Centaur Hotel, ‘‘appears to be a pre-motivated objective to dispose of the same, flouting the provisions/conditions of sale, since the transfer of 100 per cent holding in BHPL will automatically lead to the transfer of the property and not sale’’.

‘‘This would not have been possible if A B Hotels Limited had acquired Centaur Hotel, Mumbai Airport,’’ the report adds.