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News updated at 3:20 PM IST

Adarsh scam accused Gidwani is dead

Mumbai, Nov 27, 2012, (IANS) : 10:46 IST
Kanhaiyalal Gidwani, businessman, former Congress leader and prime accused in the Adarsh housing corruption scandal, passed away early Tuesday following a heart attack, a family source said. He was 61.

Gidwani had been admitted to south Mumbai's Breach Candy Hospital following breathing problems two days ago. He breathed his last in the hospital early Tuesday, the family source added.

The high-profile and flamboyant former legislator and state Congress spokesman had been arrested by the Central Bureau of Investigation in March last year for his role in the Adarsh Housing Society scam in Colaba.

The controversy involved a prime plot in south Mumbai's Colaba on which a 31-storey building was constructed by the society, allegedly illegally. The plot was orignally earmarked for housing war widows and Kargil heroes.

Gidwani was accused of paying Rs 1.25 crore to financial consultant JK Jagiasi to influence CBI officials investigating the case.

Following Gidwani's arrest, an embarrassed Congress had suspended him from the party and attempted to distance itself from him.

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