Last week, a businessman from Tamil Nadu has filed a complaint with the Central Bureau of Investigation (CBI) against former Finance Minister P Chidambaram, wife Nalini and family members and top officials of Indian Overseas Bank (IOB) for grabbing his hotel in Tirupur. The businessman Dr. K. Kathirvel has filed a complaint with CBI Director, after the CBI Tamil Nadu unit’s reluctance to entertain the complaint.
Kathirvel is a businessman in his late 40s, is running hotel, poultry, education and real estate business in southern states. According to his complaint, in 2007, ‘Comfort Inn’, the hotel in Tirupur in which he was a partner, was grabbed by Padmini, sister of Chidambaram’s wife Nalini with the help of top management of Indian Overseas Bank (IOB). The hotel worth more than Rs. 10crores ($1.5 million) value had a loan due of Rs. 2.5 crores ($375,000) with the IOB and IOB declared the loan as a Non-Performing Asset (NPA) and announced auction. Kathirvel approached Madras High Court and later Debt Recovery Tribunal and paid Rs. 64 lakhs ($96,000) to the IOB to avoid auction. Chidambaram was the Finance Minister then.
After receiving Rs. 64 lakhs ($96,000), the Bank promised cancellation of auction. According to the complaint, the Bank cheated him and conducted a farce auction and allotted the hotel to Padmini at a very cheap rate of Rs. 4.5 crores ($675,000). The hotel’s value was more than Rs. 10 crores ($1.5 million) and all of a sudden Padmini with the help of mob of goons barged into the hotel and forcefully acquired the hotel. And after some years, the hotel was inaugurated by P Chidambaram.
Kathirvel went ahead with complaints to Chidambaram, the then Finance Minister and Bank authorities. According to him, the Bank authorities threatened him to withdraw his complaints against handing over the hotel to Padmini and started blackmailing him by sending loan recovery notices and stopping finances to his other businesses, including the poultry farm.
Chidambaram wrote to him in May 8, 2008 that he was not a party to an issue with him and a private party. The private party is none other than his sister-in-law Padmini. Chidambaram said he had advised wife Nalini to leave handling the files of Padmini. Nalini called Kathirvel and offered Rs. 2.5 crores ($375,000) to withdraw from all cases and his hopes to get back the hotel. Returning the cheque of Rs. 2.5 crores ($375,000) given by Nalini, Kathirvel started knocking the doors of authorities for justice.
The 82 page complaint with all documents filed by Kathirvel is published at the end of this article. The documents show Chidambaram and Nalini’s communications with Kathirvel including photos, bank transactions and the misuse of power by the IOB. The documents reveal, how Bank authorities ignored the court orders and violated banking norms to help Finance Minister’s sister-in-law Padmini to acquire a hotel by force and fraud.
In the complaint the businessman seeks to register case against Chidambaram, Nalini, Padmini and IOB’s top officials including then Chairman S. A. Bhat for conspiracy, misuse of power to grab his hotel and trying to collapse his business. After BJP government came to power in the Centre, Kathirvel approached CBI’s Tamil Nadu unit in August 2014. For the past two years they did nothing, except for a series of interactions and promises to Kathirvel. Consulting his lawyers, Kathirvel filed a complaint with the CBI Director in New Delhi on September 19, 2016. The entire 82 page complaint with documents is published below. Why is the CBI not acting on this blatant misuse of power by Chidambaram and family? Will the political leadership order the caged parrot – CBI – to act?
1. The conversion rate used in this article is 1 USD = 66.71 Rupees.
2. Text in Blue points to additional data on the topic.
Below is a copy of the complaint to the CBI.
- Days after the mediation process with the Maran family, SpiceJet and Credit Suisse AG tell SC they resolved a financial dispute of USD 24 million - August 19, 2022
- Hindustan Aeronautics Limited, expecting to bag supply of 18 Tejas Light Combat Aircraft; soon to open an office in Malaysia - August 18, 2022
- Antrix case: Devas seizes USD 145,000 cash in the US - August 17, 2022