Delhi High Court on Tuesday asked CBI to file a status report by July 25 in a complaint that sister-in-law of former Finance Minister P Chidambaram was wrongly given a hotel in an auction in collusion with Indian Overseas Bank ( IOB) officials. The HC was acting on petition filed by Dr Kathirvel, the former owner of the Comfort Inn in Tirupur, who had approached CBI to probe the illegal manner in which his hotel was put on auction as part of a conspiracy.
In the petition, Kathirvel said his hotel Comfort Inn in Tirupur in Tamil Nadu was worth more than Rs 10 crore against which he had taken a loan due of Rs 2.5 crore from the IOB. After payment delay, the bank declared the loan as a Non-Performing Asset (NPA) and announced the auction of the hotel. After this, Kathirvel approached Madras High Court and Debt Recovery Tribunal and paid Rs 64 lakhs to the IOB to avoid the auction. Chidambaram was then Finance Minister at the centre.
After receiving Rs 64 lakhs in 2008, the Bank promised cancellation of auction, claimed the claimant. According to the complaint filed to CBI, the Bank cheated him and conducted an improper auction and allotted the hotel to Chidambaram’s sister-in-law Padmini for just Rs 4.5 crores.
Chidambaram wrote to the hotelier that he had nothing to do with the issue and claimed that he had instructed his wife Nalini to avoid handling the case of Padmini. Kathrivel also produced in the Court Nalini’s audio transcripts in which Nalini was purportedly heard telling him to leave the hotel. She even offered him a compensation of Rs 2.5 crore, the complainant said.
Arguing for Kathirvel, Advocate Yatinder Chaudhary said this is a clear case of abuse of power by the Finance Minister’s family. Justice RK Gauba asked CBI’s advocate why the agency has s not acted till date and directed the agency to submit a status report by July 25.