New Delhi, Feb. 21: The CPM today launched a fresh attack on the BJP government’s privatisation of Centaur Hotel, saying that in addition to the objections raised by the Comptroller and Auditor General, the resale of the hotel to the Sahara group violated clauses of the original sale deed and the tender documents.

In a letter to Prime Minister Atal Bihari Vajpayee, CPM Rajya Sabha member Nilotpal Basu said the resale violated a key guideline of the original tender that said “no airline companies will be allowed” to purchase Centaur Hotel as it stands on airport premises.

As the Sahara group runs a scheduled airline, the CPM contended the resale of the hotel by the Batras, who first bought the hotel from the government, was illegal.

The letter also pointed out that clause 13.4 of the sale agreement stated “neither this agreement nor any benefit or burden under the agreement shall be re-assignable by either party without prior written consent of the other party”.

The Batra family, which allegedly has close links with the RSS, was the sole bidder for the Centaur Hotel and bought it from the government two years ago for Rs 83 crore. A month later the Batras sold it to the Sahara group for Rs 115 crore, making a profit of over Rs 30 crore.

The Batras were sold the hotel after certain clauses in the original tender were relaxed, such as a norm that stipulated payment of a turnover fee to the government every year that was reduced from 6 to 2 per cent.

The CAG has now objected to this clause being relaxed. In its report placed in Parliament, the CAG has criticised the decision to reduce the turnover levy imposed on Batra Hospitality, stating the government lost a lot of money because of the relaxation in norms.

Disinvestment minister Arun Shourie, has already criticised the methodology and inferences drawn in the CAG report. Shourie today said he would write to the CAG and explain the government’s position on the sale of the hotel.