Fri. Mar 29th, 2024
Rajasthan High CourtBar and Bench

Synopsis: The case concerns the auction by the Department of Disinvestment of the Laxmi Vilas Palace Hotel, Udaipur, in 2002, when Shourie was Minister for Disinvestment.

In relation to the Laxmi Vilas Palace Hotel disinvestment case, which was going on before a Special CBI Court, the Rajasthan High Court stayed proceedings against former Union Minister Arun Shourie and others.

The Single Judge Bench of Justice Vijay Bishnoi instructed the Special CBI Judge not to continue with the trial until further orders against Shourie, Ashish Guha, Jyotsna Suri, Pradip Baijal and Kantilal Vikamsey.

Arun Shourie and others had moved the High Court to challenge the order passed on September 15 this year by the CBI Judge.

Arun Shourie
Bar and Bench

The trial court had also required the hotel to be attached, thus naming the District Collector of Udaipur as the recipient. It also, by arrest warrants, summoned the petitioners. These arrest warrants, however, were later transformed by the Rajasthan High Court into bailable warrants.

Shourie argued, challenging the order of the CBI Court on September 15, that the disinvestment procedure of the hotel had been challenged before the High Court on two previous occasions, but the petitions were not admitted. It was argued that, though rejecting these pleas, the High Court had made clear observations that no material was put on the arbitrary fixing of the reserve price of the shares.

It was also noted that, without allowing him the opportunity to be heard, the CBI Judge made remarks about Shourie, believing him to be a person of dual character.

Senior Advocate PP Choudhary, appearing for one of the accused petitioners, Umesh Kant Vyas, argued that in passing the order of attachment and issuing summons based on the information obtained by the CBI, the CBI Court erred because nothing in the information could indicate the involvement of Vyas in any crime.

He argued that the disinvestment process was fair and open and went under review at different levels as well.

He further argued, that the CBI Court continued to deny the closure report submitted by the CBI and became aware of the crime.

Senior Advocate Sanjeev Sen, Ashish Guha’s counsel,  argued that Guha was just a disinvestment committee financial advisor and had no other role to play.

The Centre was represented by SV Raju, Additional Solicitor General, who argued that the closure reports submitted twice before by the CBI claimed that no crime was committed against either of the petitioners and gave specific explanations for that. The trial court not only dismissed the closure reports without considering those factors, but also followed other orders.

The High Court then called the Special CBI Court for a record of the trial and, after three weeks, listed the matter for hearing.

The case concerns the auction by the Disinvestment Department of the Government of India in 2002 of the Laxmi Vilas Palace Hotel, Udaipur to Bharat Hotels Ltd.