Both the houses of the Parliament were adjourned today after the opposition demanded Chidambaram's resignation following a report that he had quashed three FIR's against a former client.

Loud protests and demands for the resignation of Home Minister P. Chidambaram saw the Lok Sabha adjourned for the day, soon after it was convened at 2pm. The house was also adjourned earlier in the morning following MPs demanding that they be invited to inaugurate rural roads build under the Pradhan Mantri Gram Sadak Yojana. The fresh demands for Chidambaram's resignation came after a report in the Daily Pioneer alleged that the Home Minister had directed the Delhi police to withdraw three FIRs registered against one of his former clients, SP Gupta, of M/s Sunair Hotels Pvt Ltd, on 29 May this year.

SP Gupta was accused of cheating and forgery after he floated a charitable trust named after Rajiv Gandhi with Sonia as its chief patron. He had also forged the letterheads of several MPs. However the main charge against Gupta was that he defrauded VLS Finance to the tune of several crores of rupees.

The paper alleges that the Home Ministry gave directions to the Delhi Police to quash the FIRs based on a petition Gupta made to the Home Secretary. Before issuing directions to the Delhi Police however, the Home Ministry had consulted the Law Ministry for legal opinion. According to the report, the Law Ministry is said to have told the Home Ministry, “The power under Section 321 of the CrPC vested in Government can be exercised in such cases in the interest of proper administration of justice and the paramount consideration in such cases is the administration of justice.”

Chidambaram had represented Gupta in 2003 and had argued for the quashing one of the FIRs before the Delhi High Court that year. He had done the same before the Company Law Board (CLB) in 2001.

"When the file was submitted to the Home Minister, he noted on May 4, 2011 that MHA should not give any direction and MHA may only convey the advice of the Ministry of Law,” CNN-IBN TV channel quoted Home Ministry’s joint secretary M Gopal Reddy as saying.

Reddy said that the Home Minister could not remember if he had ever represented Gupta.

The Opposition led by Chandan Mitra of the BJP raised the issue of conflict of interest against Chidambaram. The Opposition descended into the Well of the house and displayed copies of the report and demanded Chidambaram's resignation. They were joined by the opposition in the Rajya Sabha.

To counter them, ruling Congress members stood up and displayed copies of another daily which had a report that a trust, with Anna Hazare as a member, had allegedly grabbed land in Pune.

The Lok Sabha also witnessed uproar during Zero Hour with BJP and AIADMK members rushing into the Well demanding that Chidambaram be sacked. In the din, the House was adjourned till 2 pm.The Parliament will meet again tomorrow at 11 am.

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