Holiday Inn is unlikely to go ahead with its proposed alliance with Okara group, which is facing serious charges of swindling over Rs 100 crore raised from small investors through teak plantation and other deposit schemes.

Okara group's vice-chairman NS Sahni, who is also chairman and managing director of Okara Agro Industries Ltd, was arrested by Delhi police about 10 days ago on charges of cheating, following complaints on a large-scale by investors. Other close relatives actively associated with the group are reported to have gone underground.

The group's chairman IS Sahni died over three months ago in mysterious circumstances in Mumbai. Holiday Inn's executive director for Indian operations, Rakesh Mathur, when asked for his comments on the fate of the project confirmed that the 110-room five-star hotel hadbeen put on hold.

"There has been no progress on the hotel front since November, 1997," Mathur said but added that the project had not been `shelved' so far. "Unless the Okara group builds the property, how can Holiday Hospitality manage it," he added.