The CBI informed Delhi High Court that Indian Overseas Bank is not granting sanction for prosecution against officials involved the case related former Finance Minister P Chidambaram’s family involved hotel grabbing case by misusing Sarfaesi.

The agency filed the affidavit previous week said that though they found gross violation and illegalities by certain bank officials in helping Chidambaram’s family members to grab Hotel Comfort Inn in Tirupur, Tamil Nadu.  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. . CBI in its recent affidavit said that after finding gross illegalities, in mid 2020 onwards they are seeking sanction for prosecution against the three bank officers from 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 auction to hand over the hotel to Chidambaram’s sister in law Padmini.

“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. PNS