FM rejects demand for resignation

New Delhi, Aug 2 (UNI) Finance Minister P Chidambaram today rejected the demand for his resignation, stating that he would not respond to any matter sought to be raised during zero hour in the Rajya Sabha.

''However, if he receives a notice from the Chairman, then he will immediately respond to it,'' an official spokesman said.

Earlier in the day, Samajwadi Party member Amar Singh had demanded in the Rajya Sabha, the resignation of Mr Chidambaram, pending a CBI inquiry sought by members of SP, TDP and AIADMK into the Minister's alleged association with the Vedanta Resources PLC, which was reportedly involved in financial irregularities.

Speaking after the Rajya Sabha reassembled at 1400 hrs following an adjournment over the issue during the Zero Hour, the Samajwadi Party member said Mr Chidambaram should uphold the Congress tradition set by Mr T T Krishnamachari who had resigned in connection with the Mundhra Affair in 1958, the first financial scam of independent India.

He noted that Mr Chidambaram had earlier quit as Commerce Minister in the P V Narasimha Rao government in 1993 over his alleged involvement in the scam-tainted Fairgrowth Financial Services, which was reportedly involved in the multi-crore Harshad Mehta scam.

Mr Amar Singh's demand was met with protests from the treasury bench, and he could proceed only after Deputy Chairman Rehman Khan clarified that the member had been permitted to speak.

Earlier, waving copies of the book ''Vedanta's Billions'' written by Rohit Poddar on the functioning of Vedanta Resources and Sterlite companies owned by Mr Anil Agarwal, Samajwadi Party, TDP and AIADMK members demanded a discussion on the matter.

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