Former Finance Minister P Chidamabram's family is embroiled in yet another controversy, this time over charges of grabbing a hotel. The CBI on Friday informed the Delhi High Court about registering of Preliminary Enquiry (PE) in a case involving Chidambaram's family members in connivance with Indian Overseas Bank's higher officials. The PE was registered on November 29. Hearing the CBI's arguments, Justice Mukta Gupta expressed displeasure over the slow pace in the probe and ordered submission of a detailed investigation report on the next date of hearing on May 3.
Kathirvel, owner of Comfort Inn in Tirupur, has alleged that Chidambaram's wife Nalini and her sister Padmini had grabed his hotel in 2008 with the help of IOB officials. Chidambaram was then the Finance Minister. The IOB had declared the Kathirvel's company that owned the hotel as a Non Performing Asset and announced for its auction.
After getting notice from IOB, Kathirvel paid Rs 65 lakh as first installment as prescribed by the bank to avoid auction. But even after paying the first installment, the bank conducted a "mock" auction the very next day and allotted the hotel to Padmini for Rs 4.25 crore even while the hotel's actual value was then Rs 10 crore, alleged the petitioner.
"On May 2, 2008, the promoters of the hotel (Kathirvel) filed a Special leave Petition (SlP) before the Supreme Court against the order of the Madras High Court, vacating the stay. The matter was posted for hearing on May 6, 2008 and same was intimated to the Bank by the lawyers of the complaint and not to proceed further till the matter is heard in the Supreme Court. In spite of that on May 5, 2008, the Bank confirmed the sale in favour of Padmini and the Sale Certificate was issued in favour of Padmini after paying the remaining 75 per cent of the bid amount on the same day.
"The Certificate of sale was also registered in Tirupur Sub Registrar on the same day. Normally, in other cases the bankers usually wait for the final order of the Supreme Court. But in this case, it is suspected that the bankers might have acted in favour of Padmini based on pressure from
higher officials of the Head Office level," said CBI in the 13 page affidavit detailing the banking violations and abuse of power committed by former Finance Minister P Chidambaram's family.
Kathirvel also produced his conversations with Chidambaram's wife Nalini, threatening him to withdraw from the case. He also produced Chidambaram's letter to him, claiming that he told his wife Nalini not to entertain the case of Padmini anymore. On April, 2017, the Delhi HC ordered the CBI to file a status report. But within weeks Padmini passed away.
Appearing on behalf of Dr.Kathirvel, advocate Yatinder Chaudhary argued that the CBI is delaying the case. Observing displeasure on the slow pace of probe, Justice Mukta Gupta ordered CBI to submit the complete investigation report by the next hearing. The Chidambaram family is already facing the heat in the Aircel-Maxis and INX Media cases.