Monday, May 16 2005 15:16 Hrs (IST) - World Time -

New Delhi: Sanjay Nirupam, who first raised the issue of sale of Centaur Hotels in Mumbai in Rajya Sabha, has written to Prime Minister Manmohan Singh demanding a probe into privatisation of 18 ITDC hotels by the NDA (National Democratic Alliance) Government and alleged that the hotels were bought by BJP (Bharatiya Janata Party) MPs.

In a letter to the Prime Minister, Nirupam, who has joined Congress after resigning from Shiv Sena, alleged "gross undervaluation" of ITDC properties and demanded an inquiry by Central Vigilance Commission (CVC).

In the letter, a copy of which was marked to UPA (United Progressive Alliance) chairperson Sonia Gandhi, he said, "These 18 hotel properties were sold at a paltry sum of approximately Rs 300 crore, whereas two properties of Hotel Corporation of India in Mumbai fetched approximately Rs 230 crore."

"The designed and guided 'valuation procedure' ensured that these remain grossly undervalued. Later, single bidding allowed it to be bought over by BJP MPs and others close to BJP establishment. It has encouraged crony capitalism," the letter said.

Nirupam demanded CVC probe into the whole process of selection of agency for evaluation of ITDC properties, criteria for fixing reserve price and allowing single party bids.

"The Comptroller and Auditor General (CAG) report on disinvestments of HCI-owned Centaur Hotels in Mumbai has vindicated my long drawn battle for cleaning public life," he said in the letter dated May 12.

Acting on the CAG findings, which pointed to irregularities in the sale of two Centaur hotels, the Government has already ordered an inquiry into the privatisation.