CBI to quiz NDMC’s ex-officials in graft case

The CBI will soon seek clarifications from two former senior officials of the New Delhi Municipal Council (NDMC) in connection with its investigations pertaining to alleged irregularities in recovery

Update: 2016-04-05 20:00 GMT
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The CBI will soon seek clarifications from two former senior officials of the New Delhi Municipal Council (NDMC) in connection with its investigations pertaining to alleged irregularities in recovery of '400 crore licence fee from a posh Delhi-based hotel.

The agency recently registered a preliminary enquiry (PE) against chairperson and chief operating officer of the private firm which owns the hotel and unknown officials of NDMC in this regard. Sources said on the complaint of Home Ministry the agency registered the PE.

Sources said primary allegations are irregularities in the recovery of licensee fee from the hotel by the officials of NDMC which caused loss of about Rs 400 crore to the exchequer and corresponding gains to the company. It is alleged that NDMC officials allowed a settlement of pending license fee dues towards the civic body by the hotel by accepting a one-time fee of over '150 crore which resulted in the loss of '400 crore to the exchequer.

“The agency will soon seek clarifications from two former senior officials of the NDMC. If required, the agency may also seek certain documents pertaining to the matter from the council,” sources said. The matter was referred to CBI by the Union home ministry which had acted on recommendation of an inquiry committee headed by a joint secretary officer which had listed the alleged irregularities. NDMC had signed a licence deed with the hotel in 1981 and the hotel started operating in 1987.

“As per the deed, they were supposed to pay 21 per cent of the gross turnover to NDMC, but they later moved court saying the amount being charged was atrocious,” sources said.

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