The Hindu : Sena had interest in Centaur sale: Shourie

Online edition of India's National Newspaper
Sunday, Oct 20, 2002

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National

Sena had interest in Centaur sale: Shourie

By Our Special Correspondent

NEW DELHI Oct. 19. The disinvestment controversy became murkier today as the Disinvestment Minister, Arun Shourie, today revealed the Shiv Sena's interest in the sale of Mumbai's Centaur Hotel despite the party having publicly denounced the privatisation process. The deal ended with the hotel being sold to A.L. Batra, reportedly close to the Rashtriya Swayamsevak Sangh, which has been vociferous in its opposition to disinvestment. Mr. Batra has, in turn, quickly sold the hotel to the Sahara group making a neat profit in the process.

With the CPI(M) today decrying it as yet another scam in the privatisation of public sector units, Mr. Shourie seized the opportunity to charge the NDA's coalition partner, Shiv Sena, with "double speak'' on disinvestment issues. He said the Sena had approached him repeatedly when the hotelier, Ajit Kerkar, was not able to make the payment, urging that the sale should be completed.

The sale of the hotel was ultimately made to Batra Hospitality for Rs. 83 crores last year, but the latter has now sold the property to the Sahara group for over Rs. 100 crores. The resale has led to several issues being raised including the need for a lock-in period on resale.

The CPI(M) has also questioned the validity of the valuation process. In a statement, it has pointed to the fact that the original buyer was known to be close to the RSS and demanded a CBI inquiry since the public sector units were being undervalued by the Department of Disinvestment(DOD).

According to Mr. Shourie, there was no lock-in period prescribed for outright sale of units in the transaction documents as against those where the Government retained an equity stake. On whether the deal violated any specific provisions of the share purchase agreement, he said this would have to be studied.

On the valuation of the resale, he referred to the Supreme Court judgment in the BALCO case saying that valuation was the price the buyer was willing to pay. Asked whether the new owner would meet the commitments to protect employees, he said these would have to be adhered to, as they would get not just assets but also liabilities.

Speaking to newspersons at the inauguration of a hostel for students from the north-eastern States here, Mr. Shourie warned that the public sector aluminium giant, NALCO, would end up making losses like the Steel Authority of India Limited (SAIL) in the next five years if privatisation was delayed owing to the present conditions.

Responding to the Coal and Mines Minister, Uma Bharti's reported statement on the NALCO disinvestment, he said the Prime Minister, Atal Behari Vajpayee, had on Friday clarified the Government's position on the issue to the Orissa Chief Minister, Naveen Patnaik.

He did not agree with the criticism that views of administrative Ministries were being ignored by the DOD as the Ministries concerned were part of the process at every step.

On the prospects of achieving the Rs. 12,000 crore disinvestment target, Mr. Shourie said that at this rate there would be no target.

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