Chidambaram gets bail in CBI part of INX Media case

SC pooh-poohs CBI’s claim he is a ‘flight risk’.

October 22, 2019 10:55 am | Updated December 03, 2021 08:17 am IST - New Delhi

P. Chidambaram. File photo

P. Chidambaram. File photo

The Supreme Court on Tuesday granted bail to former Union Finance minister P. Chidambaram in the case registered by the CBI in the INX Media case .

A three-judge Bench led by Justice R. Banumathi refused to buy the argument made by Solicitor General Tushar Mehta that, across board those accused in economic offences should be treated as a “flight risk” and denied bail.

Justice Banumathi junked the logic weaved by Mr. Mehta that fight riskiness of economic offenders was a “national phenomenon”. Such straight-jacket formulae - that all economic offenders were flight risks and would abscond abroad - could not be formulated to deny bail to a person who was otherwise eligible for his freedom, Justice Banumathi, who authored the judgment, reasoned.

“The appellant [Chidambaram] is in custody from 21.08.2019 for about two months. The co-accused were already granted bail. The appellant is said to be aged 74 years and is also said to be suffering from age-related health problems. Considering the above factors and the facts and circumstances of the case, we are of the view that the appellant is entitled to be granted bail,” the Supreme Court ordered.

The case of Mr. Chidambaram, whose personal liberty was at stake, cannot be linked to other “unconnected cases” in which economic offenders had fled the country, the court said.

The Bench, which also comprised Justices A.S. Bopanna and Hrishikesh Roy, dismissed Mr. Mehta's contention that Mr. Chidambaram has the “wherewithal to flee the country and he remains a flight risk”.

On this, the court pointed out that the FIR in the case was registered on May 15, 2017. The Delhi High Court had given Mr. Chidambaram interim protection, which lasted from May 31 last year to August 20, 2019. During this time, Mr. Chidambaram had not once applied to go abroad. Nor does the FIR contain a whisper about him trying to flee the country. Besides, there was no whisper of such an allegation in any of the six remand applications made by CBI in court.

The court found merit in Mr. Chidambaram's argument that he has no intention to flee. He intends to fight the case. Justice Banumathi gave due regard to Mr. Chidambaram's credentials as an MP and a senior member of the Bar with strong roots in society.

On the allegation that Mr. Chidambaram would tamper with evidence if released on bail, the Supreme Court said the case was based on documents already in the custody of the prosecuting agency. Hence, there was no chance of any tinkering of evidence.

The court referred to how the CBI had alleged in the High Court that Mr. Chidambaram and his son, Karti, had approached two material witnesses for their silence. The allegation was part of a sealed cover note handed over to the High Court.

The apex court agreed that this allegation surfaced only when the former minister's bail came up.

“The CBI has no direct evidence against the appellant regarding the allegation of appellant directly or indirectly influencing the witnesses... There are no details as to the form of approach of those two witnesses either SMS, e-mail, letter or telephonic calls and the persons who have approached the material witnesses. Details are also not available as to when, where and how those witnesses were approached,” the Supreme Court observed.

Setting aside the September 30 order of the Delhi High Court refusing bail to the senior Congress leader, Justice Banumathi wrote that the High Court had ignored the well-settled principles for grant/refusal of bail.

Order to Special Court

In fact, the High Court went into the merits of the case while deciding a bail plea. The apex court ordered the Special Court to not consider the remarks of the High Court during the trial.

The court said Mr. Chidambaram should be released if he was not required in any other case. He had to execute bail bonds worth Rs. 1 lakh. He should surrender his passport, if not already done, and seek the permission of the Special Court whenever he wants to go abroad. He should further cooperate with any interrogation in the case.

However, Mr. Chidambaram is currently under a seven-day remand with the Enforcement Directorate (ED), which is investigating the money laundering angle in the INX Media case. He was arrested by the ED shortly before the judicial remand of 60 days for the CBI case came to a close. The CBI, on Saturday last, filed a charge sheet against Mr. Chidambaram and 13 other accused in its part of the INX case.

After the judgment was pronounced, Mr. Mehta stressed repeatedly to the Bench that the bail should not influence the ongoing proceedings in the ED case.

Justice Banumathi responded that the judgment has clearly said that the “findings in this judgment be construed as expression of opinion only for the limited purpose of considering the regular bail in CBI case and shall not have any bearing in any other proceedings”.

Senior advocate Kapil Sibal remarked that both CBI and ED investigations were based on the same set of facts in the same case.

The case concerns irregularities in Foreign Investment Promotion Board (FIPB) clearance given to the INX Media for receiving foreign investment to the tune of Rs. 305 crore against an approved inflow of Rs.4.62 crore. 

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