CBI says Indian Overseas Bank shields officials in connection with Chidambaram family’s hotel grabbing case

IOB's refusal will ultimately lead to the closure of the case and give Chidambaram's family a way to escape

May 10, 2023

Why IOB not granting sanctions for prosecution against officials involved in the case?

The Central Bureau of Investigation (CBI) informed Delhi High Court that Indian Overseas Bank (IOB) is not granting sanctions for prosecution against officials involved in the case related to former Finance Minister P Chidambaram’s family involved hotel grabbing case by misusing Sarfaesi. The agency filed the affidavit the previous week and said that though they found gross violations and illegalities by certain bank officials in helping Chidambaram’s family members to grab Hotel Comfort Inn in Tirupur, Tamil Nadu.[1]

Nalini’s phone conversation exposes her

CBI filed Preliminary Enquiry and later registered Regular Case after the hotel’s promoter Dr. Kathirvel approached Delhi High Court in 2016. The hotel promoter’s advocate Yatinder Chaudhary argued that then finance minister Chidambaram’s wife Nalini’s sister Padmini grabbed the hotel in connivance with IOB officials violating all laws. In his complaint, Kathirvel produced a phone conversation with Chidambaram’s wife Nalini asking him not to file complaints about her sister’s hotel grabbing in connivance with the IOB officials. He also produced a cheque given to him by Nalini as compensation.[2]

Misuse of the power

PGurus published the details of the Chidambaram family’s hotel grabbing in 2016. The sheer misuse of the power of the Chidambaram family can be read here[3].

IOB officials helped Chidambaram’s family to grab hotel

CBI in its recent affidavit filed to Delhi High Court on May 3, 2023, said that after finding gross illegalities, in mid-2020 onwards they are seeking sanction for prosecution against the three bank officers from Indian Overseas Bank (IOB) and the bank has rejected their application. The agency in its affidavit said that the bank officials have illegally declared the hotel business as NPA and illegally conducted an auction to hand over the hotel to Chidambaram’s sister-in-law Padmini. Nalini’s younger sister Padmini passed away in 2017, as soon as CBI summoned her, and her son-in-law was found dead in mid-2018 in a mysterious situation.

“The CBI is not in a position to initiate investigations against D Palanisamy, then senior manager, A Mani, then Chief Manager, S Palanivel, then senior manager for want of previous approval from the competent authority as mandated under Section 17(A) of Prevention of Corruption Act,” said CBI.

“The concerned authority had issued the order declining the approval sought under this Section. However, the law has not provided for the mechanism to agitate such denial by the investigating agencies nor the law has evolved in this respect,” added CBI.

Is IOB helping Chidambaram’s family escape?

Due to the IOB’s rejection to give sanction for prosecution will ultimately lead to the closure of the case and give an escape route to Chidambaram’s family members involved in the hotel grabbing. The CBI in September 2020 informed the Delhi High Court that they are going to register a regular case in the hotel grabbing case[4]. The probe agency’s affidavit clearly says due to the new diluted Prevention of Corruption Act in 2018 ties their hands in probing the cases. CBI in its eight-page affidavit detailed the illegalities and violations by the Chidambaram family by misusing the banking rules and declaring a fake auction to hand over the hotel to Padmini.

Reference:

[1] IOB shielding officials in PC relative’s hotel grab case: CBI – May 10, 2023, PGurus.com

[2] Phone conversation of Nalini Chidambaram exposes her role in hotel grabbing – Apr 27, 2017, PGurus.com

[3] Businessman Kathirvel files complaint with CBI against Chidambaram, family & IOB for hotel grab – Sep 25, 2016, PGurus.com

[4] 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

PGurus is now on Telegram. Click here to join our channel and stay updated with all the latest news and views

For all the latest updates, download PGurus App.

Author
Recent Posts

Team PGurus

We are a team of focused individuals with expertise in at least one of the following fields viz. Journalism, Technology, Economics, Politics, Sports & Business. We are factual, accurate and unbiased.