The Enforcement Directorate on Thursday registered a money-laundering case on the basis of a first information report filed by the Central Bureau of Investigation against Karti Chidambaram and others for allegedly scuttling a probe against INX Media with respect to foreign investments from three Mauritius-based entities in 2007.
The case was filed under the Prevention of Money Laundering Act after the ED received a copy of the FIR.
The directorate will investigate the allegation that Mr. Karti Chidambaram received money in lieu of the “services” rendered to INX Media by his company Chess Management Services, through another company, Advantage Strategic Consulting Pvt. Ltd. (ASCPL), indirectly “controlled” by him. The agency will soon issue summons for recording statements of all those involved.
Mr. Karti Chidambaram, son of the then Finance Minister, P. Chidambaram, allegedly exercised his influence over Foreign Investment Promotion Board (FIPB) officials to help INX Media wriggle out of the situation. The Department of Revenue had been asking for an investigation into alleged unapproved downstreaming of investment in the INX News capital.
The company, which initially got an FIPB approval for ₹4.62 crore influx, had received ₹305 crore by selling its shares at a premium of ₹800 a unit. For downstreaming of funds, the company reapplied and got a separate approval from the Finance Ministry later, allegedly concealing that it had already been done.
More dealings
Even as the CBI is probing the role of Mr. Karti Chidambaram and his associates in the case, an official said the agency was examining certain purported financial dealings between the companies said to be associated with him and Diageo Scotland Ltd., Katra Group, VST Tillers Tractors and Sequoia Capital. The ED has shared the relevant documents with the CBI, under legal provisions mandating that commission of an alleged cognisable offence should be reported to the competent agency. The agency has been pursuing a probe against Mr. Karti Chidambaram, Vasan Healthcare, ASCPL and others under the Foreign Exchange Management Act.
The agency suspects, on the basis of certain e-mail exchanges, that Diageo had paid about $15,000 to ASCPL as “service charges” for purportedly fixing appointments with the then top government functionaries at the Centre.
