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Panel urges high-level probe into Centaur Hotel sale
Tuesday, 11 March 2003, 20:30 IST
NEW DELHI: A parliamentary panel Monday urged the government to probe the privatisation of the Centaur Hotel at Mumbai airport.
Pointing out discrepancies in the divestment of the state-run hotel, the panel said in a report presented to the Rajya Sabha the government should order an enquiry into the entire transaction by the Central Vigilance Commission.
The panel was set up following reports that Centaur Hotel, sold by the government to privately owned Batra Hospitalities for 
830 million, had been resold to the diversified Sahara Group for 1.15 billion.
Centaur Hotel was set up by the public sector Hotel Corporation of India Ltd., a wholly owned subsidiary of India's flag carrier Air-India.
"The committee recommends that in light of the discrepancies brought out with regard to the selection criteria, reduction of turnover levy, re-bidding process....the government should order an enquiry into the entire transaction relating to Centaur Hotel by the Central Vigilance Commission," the panel said.
"The committee also feels that the 100-percent shareholding of Batra Hospitalities, which took over Centaur Hotel, has been acquired by Sahara Group with the sole intention of taking over the business of Centaur Hotel.
"This clearly shows that there were interested parties for Centaur Hotel that were not properly explored, disapproving the contention of the ministry of civil aviation that it was unlikely that a new bidder would have shown interest.
"The committee feels that the reason why only a single bid was considered even after reducing the turnover levy, needs to be investigated."
It suggested that necessary safeguards should be incorporated in future sale agreements to prevent quick change of hands at a premium.
Source: IANS
830 million, had been resold to the diversified Sahara Group for 1.15 billion.
Centaur Hotel was set up by the public sector Hotel Corporation of India Ltd., a wholly owned subsidiary of India's flag carrier Air-India.
"The committee recommends that in light of the discrepancies brought out with regard to the selection criteria, reduction of turnover levy, re-bidding process....the government should order an enquiry into the entire transaction relating to Centaur Hotel by the Central Vigilance Commission," the panel said.
"The committee also feels that the 100-percent shareholding of Batra Hospitalities, which took over Centaur Hotel, has been acquired by Sahara Group with the sole intention of taking over the business of Centaur Hotel.
"This clearly shows that there were interested parties for Centaur Hotel that were not properly explored, disapproving the contention of the ministry of civil aviation that it was unlikely that a new bidder would have shown interest.
"The committee feels that the reason why only a single bid was considered even after reducing the turnover levy, needs to be investigated."
It suggested that necessary safeguards should be incorporated in future sale agreements to prevent quick change of hands at a premium.
Source: IANS