The Enforcement Directorate (ED) is conducting searches at six places in Chennai and Kolkata in connection with an investigation into the FIPB (Foreign Investment Promotion Board) approval in the Aircel-Maxis case.
"The searches are being carried out on the premises of four persons," said an official.
The ED had attached assets worth Rs.1.16 crore of former Finance Minister P. Chidambaram’s son Karti Chidambaram and a company in the same case earlier this year.
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The move had drawn a sharp reaction from Mr. P. Chidambaram. “I will not be intimidated. As and when the attachment order is served, suitable action will be taken in accordance with law,” he had said.
Mr. Karti had also said that the court had discharged the accused persons and quashed the charge sheet in the case.
However, the Directorate said Mr. Karti was not part of the charge sheet that was quashed and that the CBI and the ED FIRs on the Aircel-Maxis deal were still alive.
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On the FIPB clearance to Maxis investments in Aircel, Mr. P. Chidambaram had on several occasions pointed out that it was granted in the normal course . He had said the FIPB officials examined by the CBI had affirmed that the Board, consisting of Secretaries to the Government of India, correctly approved and recommended the case and placed the minutes before the then Finance Minister (who was the competent authority) for approval.
PTI adds:
'Karti uncle's premises searched'
The ED conducted searches on the premises of S. Kailasam, maternal uncle of Mr. Karti, at Teynampet in Chennai, sources said.
Others being searched in the city were identified as S Sambamoorthy and Ramji Natarajan.
In Kolkata, two locations of Manoj Mohanka on Lee road and Lovelock Place were being searched, they said.
The agency had said it is investigating “the circumstances of the said FIPB approval granted by the then finance minister [Mr. P Chidambaram]“.
The ED has alleged that Mr. Karti has “disposed” of a property in Gurgaon, which he allegedly rented out to a multinational company “to whom foreign direct investment [FDI] approval had been granted in 2013”.
It charged that Mr. Karti had “also closed certain bank accounts and attempted to close other bank accounts in order to frustrate the process of attachment” under the PMLA (Prevention of Money Laundering Act).
It said FIPB approval in the Aircel-Maxis FDI case was granted in March, 2006 by the then Finance Minister even though he was competent to accord approval on project proposals only up to Rs 600 crore and beyond that it required the approval of the Cabinet Committee on Economic Affairs (CCEA).
“In the instant case, the approval for FDI of 800 million USD (over Rs 3,500 crore) was sought. Hence, the CCEA was competent to grant approval. However, approval was not obtained from the CCEA,” it said.