The CBI on Friday defended the registration of a case in the disinvestment of Udaipur-based laxmi Vilas Palace saying the agency is not looking at the decision of disinvestment as a policy but its implementation.
While implementing disinvestment decision regarding the disinvestment of the heritage category hotel, the valuation was not properly done and there were apparent mala fides in the implementation process, officials said. The CBI is investigating the mala fide in the implementation of the Government’s decision to disinvest the hotel by the concerned officials.
The then disinvestment secretary Pradip Baijal headed the Inter-Ministerial Group (IMG), the nodal agency for implementation. “The Cabinet Committee on Disinvestment was misguided by the IMG about the implementation process,” officials said. The value appointed by the India Tourism Development Corporation (ITDC) was removed and one that was not on the Government panel was appointed in its place that allegedly undervalued the property causing monetary loss to the Government, they said.
On reports questioning the timing of the registration of the case after over a decade, the agency said “it has been traditional practice to register cases on the basis of source information as prescribed in the Crime Manual that has been acknowledged by Constitutional courts.”
Besides Baijal, the CBI has named then Managing Director Ashish Guha of Delhi-based lazard India ltd and Kantilal Karamsey Vikamsey, Proprietor of Mumbai-based Kanti Karamsey & Co. While lazard was a Financial Advisor at the Ministry of Disinvestment, Karamsey was an Evaluator appointed by IMG.