Tourism Ministry Calls For Report On Hotel 'Scam'

EH&C Staff - Mumbai

The tourism ministry has asked the management of the India Tourism Development Corporation (ITDC) to submit a report on charges of financial irregularities in state-run Ashok Hotel.

Revolutionary Socialist Party (RSP) leader Abani Roy had levelled charges of corruption against Tourism Minister Renuka Chowdhury in the operation of Ashok Hotel leading to alleged misappropriation of millions of rupees.

Roy has alleged collusion between the hotel management and the private operator of a discotheque in the hotel, leading to ITDC's huge revenue loss.

"We have called for a report from the ITDC management, tourism secretary, A.K. Misra stated.

"Let us understand the facts before splashing the matter," said Misra, adding that he is still to get all relevant information about the case.

Refusing to comment on the matter, an upset Chowdhury however took the political line of defense stating that the "matter is between the prime minister who is my boss and me".

She added that the "law would take its own course".

Defending the ministry, Misra said in the earlier alleged scam on the process of tender for procuring Johnny Walker label Scotch whisky at high prices for the ITDC outlet at the airport duty free shop, the media had not got the full facts but still went ahead.

"In fact on the basis of negotiations with the supplier we have been able to bring down the prices and will be having a recurring annual saving of Rs.25 million," Misra said.