Govt orders probe into sale of Centaur hotels

Bowing to the demand of Left parties, finance minister P Chidambaram today announced an inquiry into the sell-off of Centaur hotels in Mumbai after the Comptroller and Auditor General (CAG) passed strictures on the then NDA government over the controversial sales.

"After examining the report of the CAG in respect of sale of the two hotels, the government has decided to order an inquiry," he said amid thumping of desks in both houses of the Parliament.

"The nature and scope is under consideration, and will be announced in due course," he said in a brief statement.

The opposition NDA was not present as it has been boycotting both the houses since April-end.

Chidambaram's suo moto statement came days after the Left parties had given an ultimatam to the government that it should institute a CBI inquiry into the sale of Centaur Juhu and Centaur Airport hotels in Mumbai.

Soon after the CAG report was tabled in the Parliament on May 6, the Left members were up in arms in both the houses wanting to know what action was being taken on the findings.

Chidambaram had promised in August last year that he would initiate action only after getting the report.

The CAG report found "inconsistencies" in procedure and "relaxations and deviations" offered to the sole bidder that lowered the value of the property.

Arun Shourie, disinvestment minister in the NDA government, has said he was prepared to face any inquiry and denied any wrongdoings.

In a severe criticism of the procedure and valuation process, the CAG report said: "The sale transactions of the two hotels, Juhu Centaur and Airport Centaur, were finalised on the basis of single bids without the benefit of competition."