New Delhi, Dec 17 (IANS): The Communist Party of India-Marxist (CPI-M) Friday said Home Minister P. Chidambaram should clarify his alleged favouritism to a hotelier he once represented as a lawyer.

Speaking to reporters, CPI-M leader Sitaram Yechury said: "The issue is not that he represented someone 10 years ago and there is a conflict of interest now; if 10 years back he represented someone, it is possible he may not have any interest today.

"...but the thing is that the order was given from home ministry, it was said that there is approval of home minister."

Yechury said if the home minister's approval was there, it should be explained as it is a serious matter.

"What is now being claimed is that it is not correct. If it is not correct, how did it happen? In the home ministry, such things happening is a very serious matter. Someone going out of the brief to put on paper saying they have approval of home ministry, these are matters which need to be explained," he said.

The Bharatiya Janata Party (BJP) has accused the home minister of "conflict of interest", alleging that Chidambaram had favoured S.P. Gupta, chairman of Sunair Hotels Pvt Ltd, by misusing his office for his "former client".

The case dates to 1999 when owners of the luxury Metropolitan Hotel, Gupta and his company Sunair Hotels were involved in a legal battle with private firm VLS Finance Ltd that claims to have funded the hotel project.

Chidambaram Friday said he was "deeply hurt" and rejected the opposition charge that he had misused his office while withdrawing prosecution against the businessman.