New Delhi: Faulting the procedure adopted by the government for disinvestment of the controversial Mumbai Centaur Hotel property, a Parliamentary Standing Committee has demanded a thorough probe by the Central Vigilance Commission into the deal.

In its 65th report, the Committee on Transport, Tourism and Culture said, "The government should order an enquiry into the entire transaction relating to Hotel Mumbai Airport by CVC."

The hotel property was first acquired by Batra Hospitalities for a sum of Rs 83 crore only to be resold for around Rs 115 crore to Sahara Group in October 2002, leading to criticism by various political parties including Shiv Sena.

Noting that there were several discrepancies with regard to the selection criteria, reduction of turnover levy and re-bidding process, the Committee said there was no validity in the argument put forth by the Civil Aviation Ministry in this regard.

It further suggested that necessary safeguards should be incorporated in future sale agreements to prevent quick change of hands at a premium.

The Committee was peeved at the way in which the criteria were framed for initial bids which it said were "restrictive" permitting only hoteliers to participate.

"As a result the market for properties of Hotel Corporation could not be fully explored and several other parties who were interested in offering better prices could not enter the process", it said.

PTI