He has also alleged that the premium of Rs 4.5 crore, paid by the hotel group, was used for beautifying Pachmarhi during last month's Congress conclave. Singh has denied the charges.

In his letter to the Chief Minister - based on information received from a Ujjain archaeologist Kailash Chandra Jain - the Governor says that after the 19th century protected monument was denotified, it was handed over to the hotel chain for a nominal lease while ``the rent should have been at least Rs 33,75,000 per year''.

He further alleges that Rs 4.5 crore received was put in a tourism development fund and, ``if the information is correct, has been all but squandered for beautifying Pachmarhi for the recent Congress conclave.. .'' It is not clear, the letter adds, why the amount was not deposited inthe State Treasury and under what rules the amount is being spent arbitrarily. P K Mishra, ASI's superintending archaeologist, confirmed they had not received a copy of the notification denotifying the palace, though rules require any such move to have its consent.

Considered as one of the best examples of Rajput architecture, the Rajgarh Palace is situated on the slopes of the Managad hills near Chandranagar village in Chhatarpur district. It was built by Shivaji's contemporary Maharaja Hinu Pat Shah of the Bundela dynasty of Panna.

The palace is known for its huge rooms and elaborate paintings of exotic birds.

It was taken over by the State's archaeological department and declared a protected monument in the 1980s.

But Government officials are reluctant to discuss the circumstances under which it has been denotified.