FM's resignation demanded in Vedanta case by SP, TDP, AIADMK members

New Delhi, Aug 2 (UNI) Samajwadi Party member Amar Singh today demanded that Finance Minister P Chidambaram should step down until a CBI inquiry into his association with the Vedanta Resources PLC, which was allegedly involved in financial irregularities, was completed.

Speaking after the Rajya Sabha reassembled at 1400 hrs following an adjournment over the issue during the Zero Hour, the Samajwadi Party member said that Mr Chidambaram should uphold Congress tradition set by his predecessor 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 Rehman Khan, who was in the Chair, 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.

Drawing attention to the Rule Book, Minister of State for Parliamentary Affairs Suresh Pachouri rose to clarify that the matter could not be discussed under Rule 38 (A), 124 and 158 under which notice has to be given to a member against whom the allegation was being made.

''Prior intimation should be given to the individual or minister concerned,'' he said.

The Chairman said that any references to book or any allegation made would be expunged.

Earlier, the House was adjourned during Zero Hour when the members sought the resignation of Mr Chidambaram on moral grounds till the inquiry was completed.

The Chair asked them to have discussion on the issue tomorrow after a proper notice. But they were in no mood to listen and trooped into the well of the House shouting slogans leading to the adjournment till 1400 hrs.

UNI SD PK RAI1615