IOB’s refusal halts CBI action in Chidambaram family hotel grabbing case
The Central Bureau of Investigation (CBI) has informed the Delhi High Court that the probe on former Finance Minister P Chidambaram’s family members linked hotel grabbing case can’t be proceeded with further as the Indian Overseas Bank (IOB) was not giving sanction to prosecute its officers. CBI in the affidavit filed on August 28 said that the investigation proved that IOB officials connived with Chidambaram’s wife Nalini’s sister Padmini and conducted an illegal auction to grab the hotel Comfort Inn in Tiruppur in Tamil Nadu in 2007.
CBI initiated a preliminary inquiry in 2017 on a petition filed by Dr. Kathirvel, owner of the hotel, before the Delhi High Court. Kathirvel produced interactions with Nalini and the cheque of Rs.2.5 crore given by her (as the price of the hotel) and also a letter from then Finance Minister Chidambaram regarding the matter. According to Kathirvel, Nalini’s sister, Padmini, expressed a desire to buy his hotel, and he did not agree. Then, in connivance with Indian Overseas Bank officials, an auction was illegally conducted by declaring the bank account as NPA.[1]
In earlier probe status reports, CBI also said that IOB in 2020 denied sanction to prosecute its officials. In September 2020, CBI informed the High Court that it would register a Regular Case and not proceed.[2]
In 2024, the Delhi High Court ordered CBI to go ahead with the probe. Kathirvel again approached the court, citing that the CBI has not moved further. “Needless to say that the CBI shall take necessary steps with regard to the preliminary enquiry in accordance with law,” said the High Court in its order dated February 29, 2024.
“Central Bureau of Investigation is thus not in a position to initiate investigation against D Palanisamy, then senior Manager, A Mani, then Chief Manager and S Palanivel, then senior manager, all of Indian Overseas Bank, for want of previous approval from the competent authrirty as mandated under Section 17A of the Prevention of Corruption Act 1988 (as amended in 2018).
“That in view of the above declining of the mandatory approval under Section 17A of the Prevention of Corruption Act, 1988 (as amended in 2018), CBI is not in a position to initiate investigation” against the IOB officials, said CBI.
On Friday (August 29), appearing before Justice Amit Mahajan, Advocate Yatinder Choudhary, representing Kathirvel, pointed out that CBI is wrong in seeking sanction for prosecution under Section 17A as the preliminary enquiry was registered in 2017 under the old Prevention of Corruption Act. The amendment came in 2018, and the current case is being probed under the old provisions.
Advocate Yatinder Choudhary also pointed out that CBI is not talking about the role of private persons who grabbed the hotel in connivance with bank officials. The court has asked the petitioner to respond to CBI’s affidavit and posted the case on November 19.
Reference:
[1] Businessman Kathirvel files complaint with CBI against Chidambaram, family & IOB for hotel grab – Sep 25, 2016, PGurus.com
[2] CBI informs Delhi High Court on registering a regular case against Chidambaram’s family members in Hotel grabbing. CBI details wife Nalini’s role – Sep 17, 2020, PGurus.com
For all the latest updates, download PGurus App.
- Ayodhya mosque plan rejected by development authority over pending NOCs - September 23, 2025
- Crowdfunding scam: UP ATS arrests 3 from Maharashtra for misusing Gaza donations - September 21, 2025
- Aircel-Maxis scam: Fresh summons issued to Malaysian telecom giant Maxis - September 21, 2025
Supreme Court will go soft on this for it itself is involved in this fraudulent activities
Past is past, let us move forward would be the approach of Supreme Court
This is nothing other than DAOOD in white lungi.