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Joharis hold 33 per cent in Carlton Hotel: CBI probe

Vijay Chawla

The Joharis of the Century group, currently under investigation by the Central Bureau of Investigation for alleged stock market irregularities, own a 33 per cent stake in five-star hotel Carlton Hotel.

The probe has also revealed properties, roughly valued at Rs 200 million, owned by the company. The other properties identified are land for a five-star hotel in Agra and flats in Bombay.

Sources said the initial notification to the CBI is now being broadened and within a week the agency is likely to be given powers to investigate the Johri-promoted City Co-operative Bank and group company Kamal Infosys. The investigations will also look into the involvement of government-owned UPDESCO and Uptron with the company.

The agency may also question officials of the City Co-operative Bank, which is alleged to have advanced money to the Joharis even when they were members of the board.

The Joharis, since they left Lucknow, had settled some of these accounts before they were arrested two months later. Although CBI is looking into share price rigging by the group, the company, through various companies, has investments in Lucknow via vyaj badla accounts. As these investments were made without any contract note, these loans have no legal sanctity.

According to sources, the only hope for investors in getting back their money is through sale of assets of the Joharis, but for this, somebody has to move the court.

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