Court Orders Case Against Arun Shourie Over Rajasthan Hotel Sale

The sale was a part of a disinvestment process by the government.

2 min read
Former Union Minister Arun Shourie.

A CBI court on Wednesday, 16 September, ordered the registration of a case against former Union Minister Arun Shourie and others over alleged corruption in the sale of a government-run hotel in 2002, the Hindustan Times reported.

The order by the court came as the CBI filed a closure report before it in the case citing lack of evidence.


The case pertains to the alleged loss of Rs 244 crore to the government by the sale of the hotel. The hotel – earlier run by the Indian Tourism Development Corporation – was sold to Bharat Hotels Limited, which now runs the Lalit group of hotels, in 2002.

The sale was a part of a disinvestment process by the government.


The CBI said that there wasn’t evidence to launch prosecution against the accused and filed a closure report to be presented before the court.


  • The court refused to accept CBI’s closure report.
  • The court said that the hotel be handed over to the state government and directed the district collector of Udaipur to take over the hotel immediately.
  • “Prima facie, it appears that the then minister Arun Shourie and then secretary Pradeep Baijal misused their offices and caused a loss of Rs 244 crore to the central government in the deal,” the court said, as quoted by HT.
  • The court ordered that all the accused be booked under section 120B (criminal conspiracy) and 420 (cheating) of the Indian Penal Code and section 13 (1) D of the Prevention of Corruption Act.
  • The court added that they should be summoned through arrest warrants. The date of the summons would be known once the warrants are issued, according to HT


The other people accused in the case are Ashish Guha, then managing director of investment firm Lazard India Limited, Kantilal Karamsey Vikamsey, then head of valuation firm Kanti Karamsey & Co, and Jyotsna Suri, chairperson and managing director of Bharat Hotels Limited, according to HT.

(With inputs from Hindustan Times)

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