Centaur MD suspended

MUMBAI, August 27: The Civil Aviation Ministry on Tuesday suspended the managing director of Hotel Corporation of India HCI, Kamal Sharma, and appointed the deputy secretary in the ministry, V K Sadhoo, as acting MD.The suspension came after Civil Aviation Minister Ananth Kumar went on a a surprise visit to the New Delhi property of the hotel and found it to be not in conformity with five-star standards. Later, the minister cited 8220;irregularities and acts of misdemeanor8221; in running the hotels, and suspended Sharma.

Sharma, who had joined the Corporation as a management consultant in 1994, was elevated by the then prime minister Narasimha Rao, to MD in a highly controversial move. It was rumoured that Sharma was related to Rao8217;s personal astrologer, hence the top job, a charge vehemently denied by Sharma.

It was during Sharma8217;s term, the HCI 8212; operators of Centaur group of Hotels which was incurring huge losses since the last five years, turned corner and showed a net profit of Rs 5 crore for the fiscal 1996-97. It was, however, not known how the Corporation turned corner in such a short time. The financials for the fiscal 1997-98 are not available.

Despite prime properties in both New Delhi and Mumbai airports, the HCI a subsidiary of the loss-making national carrier, Air-India has failed to keep pace with the growing travel and tourism industry. Mismanagement and militant unions helped only to increase its losses and erode its brand equity. The occupancy rate in the hotel8217;s property hovers at an abysmal 50 per cent.