CBI starts probe against Le Meredien, NDMC officials

CBI has started an inquiry against chairperson and chief operating officer of a company which owns Le Meridian here and unknown officials of NDMC for alleged irregularities in recovery of Rs 400 crore license fee from the posh hotel.
The sources said on the complaint of Home Ministry a Preliminary Enquiry has been initiated against Chairman, C J International Hotels Pvt Limited, its Chief Operating Officer and unknown officials of NDMC.
They said primary allegations are irregularities in the recovery of licensee fee from Le Meridian Hotel by the officials of NDMC which caused loss of about Rs 400 crore to the excheuquer 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 Rs 150 crore which resulted in the loss of Rs 400 crore to the exchequer.
When contacted, Le Meridian spokesperson refused to comment saying the matter is subjudice.
The matter was referred to CBI by the 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," the then Deputy Director (Estate) Himanshu Ranjan, had said.
"Delhi High Court had ruled that they are liable to pay 21 per cent but the definition of gross turnover needs to be revised and should exempt taxes or income generated from sources other than the hotel. They later challenged the plea before a double bench, which upheld the judgement," he had added.