INX Media has shared 'invoices' with the investigating agencies showing that more than $7 lakh were paid to overseas entities for scuttling a possible probe against it for violation of the Foreign Investment Promotion Board (FIPB) conditions in 2007. The authenticity of the papers is being verified.
In a 'statement' to the CBI, former INX Media director Indrani Mukerjea claimed that $1 million was paid as per the demand to get the matter settled. Of the total sum, payments to the tune of $7 lakh were made abroad, as alleged.
The company has submitted four invoices allegedly countersigned by Indrani’s husband Pratim alias Peter Mukerjea, who was the director of INX News.
One such invoice pertains to the payment of $5 lakh to Greece-based Geben Trading Limited in September 2008. It is alleged that the money was paid to a UBS S.A. account as professional charges for creation or acquisition of media content.
The same month, another payment of $20,000 was allegedly made to a DBS Bank account of Advantage Strategic Consulting Singapore Pvt. Ltd. It was shown as “advance professional charges for creation/acquisition of content of various genre of audio or video”.
The agencies allege that Advantage Strategic Consulting, having its arms in India and abroad, was controlled by Karti Chidambaram. They have extracted about 200 emails revealing that he allegedly played a key role. However, Mr. Karti has repeatedly denied his role in the company.
Digital records
Again, on September 26, 2008, INX Media paid ₹60 lakh to NorthStar Software Solutions for software development and allied services. Another sum of ₹35 lakh was transferred into a Development Credit Bank (Mumbai) account of Advantage Strategic Consulting Private Limited the same month, according to the documents.
According to the Enforcement Directorate, digital records related to the alleged payments were also seized during searches. When confronted, INX Media disclosed that it had paid about ₹10 lakh to Advantage Strategic Consulting Private Limited by cheque on July 15, 2008.
Although the invoice issued by Advantage Strategic claimed that the service rendered was management consultancy, the INX Media records showed that the payment had been made for “reply towards FIPB notification & clarification”.
Unsigned invoices
It turned out that Chess Management Service, then belonging to Mr. Karti, had been contacted for consultancy on how to deal with the issue. However, the payment was made to Advantage Strategic, said an ED official.
The official said copies of the four unsigned invoices had also been seized from Mr. Karti’s chartered accountant S. Bhaskararaman, who was recently arrested. On Wednesday, he moved a bail application.
Not entertaining an oral submission for bail, a Delhi court on Wednesday remanded Mr. Karti to one-day police custody.
Abhishesk Manu Singhvi, Counsel for the accused, argued before Metropolitan Magistrate Sumeet Anand for rejection of the CBI plea for police remand and release of his client on bail.
