When contacted, Essar spokesperson said "concerted attempts have been made from time to time to stall/ delay various projects undertaken by Essar Oil by rival forces ever since Essar Oil started implementing its refinery project."

On construction of the 10.5 million tonne refinery, the Essar spokesperson said: "We have achieved financial closure for the project. We have also obtained all approvals and mandatory clearances required for the same. We expect to resume construction work shortly."

Alleging "diversion of public funds and money laundering" by the Essar Group, Deve Gowda said in his letter to IDBI chairman and managing director P P Vora that he had also written to the Prime Minister seeking an inquiry into the matter.

Essar Oil, which in consortium with Premier Oil of UK and Oil and Natural Gas Corporation (ONGC), was awarded the Ratna R-series oil and gas field in offshore Mumbai in 1993, has not been able to sign a production-sharing contract due to Amar Singh's and other Parliamentarians' questioning the project, the procedure and the bonafides of the promoters.

Government sources said several internal inquiries have been conducted into the allegations. A high powered committee of secretaries also looked into the charges and found no substance.