Panaji, March 23 (IANS) Goa Tourism Minister Francisco alias Mickky Pacheco said Monday that the five-star grading given to Hotel La Calypso would be cancelled after the opposition alleged corruption by tourism department officials in granting the hotel the grade.

Speaking during the budget session of the Goa legislative assembly, Pacheco assured the house that the five-star certification would be withdrawn as soon as possible.

'We have already initiated a vigilance enquiry against the officials responsible,' Pacheco said.

The opposition benches had earlier alleged that Hotel La Calypso had been fraudulently issued the grading with the explicit purpose of starting a casino on its premises.

Only five-star hotels in Goa are allowed to start on shore casinos according to the Goa Public Gambling Act, 1976.

'The state tourism department does not have the authority to sanction five-star grading. Only certain central government agencies are allowed to grade hotels,' Leader of Opposition Manohar Parrikar said.

Parrikar also alleged that La Calypso was given the grading when more than 50 percent of the hotel had been demolished for violating the Coastal Regulation Zone (CRZ) rules following a court order.