CBI registers case against then secretary, disinvestment (GoI) and others

New Delhi, August 28, 2014: The Central Bureau of Investigation has registered a case against the then Secretary, Disinvestment, Govt. of India, New Delhi; then Managing Director of New Delhi based private firm; Proprietor of Mumbai based private firm; an Authorized Representative of New Delhi based private hotel and unknown officials/private persons Under Section 120 B read with  Section 420 of the Indian Penal Code ( IPC) and 13(2) read with 13(1) (d) of the Prevention of Corruption Act, 1988 and substantive offences thereof, on the allegations in the matter of disinvestment of M/s Laxmi Vilas Palace Hotel, Udaipur, a unit of ITDC (Govt. of India) at much below the prescribed D.L.C rates resulting into huge monetary loss to the Govt. of India. 

It was alleged that during the period 2001-02, M/s Laxmi Vilas Palace Hotel, Udaipur, a Heritage Hotel & one of the units of Indian Tourism Development Corporation (ITDC), Department of Tourism, Govt. of India, New Delhi spread in 29 Acres of prime location land with 54 rooms with all accessories was first drastically undervalued and then sold/dis-invested to a Private Hotel situated at Barakhamba Road, New Delhi at a price of Rs.7.52 Crores (approx). However, as per then DLC rates of land in which the said hotel situated was allegedly Rs.151 Crores (approx) and in this way, an alleged loss of Rs.143.48 Crores (approx) was caused to the ITDC, Deptt. of Tourism, Govt. of India, New Delhi.

After registration of the instant case, searches were conducted at four places in New Delhi and Mumbai. Incriminating documents related to the case have been recovered.

Further investigation is continuing.

(SK Vyas/Jalandhar)