ED at­taches Karti Chi­dambaram’s `54 cr as­sets in In­dia, abroad

Financial Chronicle - - FUNDAMENTALS, POLITICS -

THE En­force­ment Direc­torate (ED) on Thurs­day said it has at­tached as­sets worth Rs 54 crore of Karti Chi­dambaram, son of former Fi­nance min­is­ter P Chi­dambaram, in In­dia, Spain and the UK in con­nec­tion with a money laun­der­ing case re­lated to INX Me­dia, an ac­tion termed “bizarre and out­landish” by him.

The cen­tral probe agency is­sued a pro­vi­sional or­der un­der the Pre­ven­tion of Money Laun­der­ing Act (PMLA) for at­tach­ment of agri­cul­tural land and bun­ga­low in Ko­daikanal and Ooty in Tamil Nadu and a Rs 16-crore flat in south Delhi’s posh Jorbagh lo­cal­ity which is in the name of Karti and his mother Nalini. Karti, the ED said, has a 50 per cent share in this prop­erty. In the UK, the ED at­tached a Rs 8.67-crore cot­tage and house in Somerset (in the name of ASCPL) and a ten­nis club val­ued at over Rs 14.57 crore lo­cated in Barcelona, Spain, as part of the same or­der.

Re­act­ing to the or­der, Karti tweeted, “A bizarre and out­landish pro­vi­sional at­tach­ment or­der which is not based on law of facts but on crazy con­jec­tures. This is meant only to grab head­lines.”

He said the or­der will not with­stand ju­di­cial scru­tiny and re­view and that he will ap­proach the ap­pro­pri­ate le­gal fo­rum. A state­ment is­sued by Karti’s ad­vo­cate said the ED or­der is “ex­parte and based on the al­leged trans­ac­tions of com­pa­nies of which my client, Karti P Chi­dam­abarm, is nei­ther a share­holder nor a direc­tor.” “It (or­der) is sub­ject of con­fir­ma­tion by the Ad­ju­di­cat­ing Author­ity and a fur­ther ap­peal to the Ap­pel­late Author­ity. The at­tach­ment or­der will be con­tested by my client Karti P Chi­dambaram,” it said.

The ED also or­dered at­tach­ment of fixed de­posits worth Rs 90 lakh, kept in a Chen­nai bank, in the name of Ad­van­tage Strate­gic Con­sult­ing Pri­vate Lim­ited (ASCPL). The as­sets are in the name of Karti and ASCPL, the firm al­legedly linked to him, the agency said. “The at­tached as­sets col­lec­tively amount to Rs 54 crore,” the ED state­ment said.

“In­ves­ti­ga­tion con­ducted so far shows that for FIPB ap­proval, Pe­ter and In­drani Muk­er­jea met then Fi­nance min­is­ter P Chi­dambaram so that there was no hold up or de­lay in their ap­pli­ca­tion. P Chi­dambaram asked for his son’s busi­ness in­ter­ests to be kept in mind. ED iden­ti­fied pay­ments of Rs 3.09 crore by Pe­ter Muk­er­jea to ASCPL and as­so­ci­ated en­ti­ties con­trolled by Karti P Chi­dambaram through ma­nip­u­lated debit notes. Dur­ing in­ves­ti­ga­tion, it was ad­mit­ted that debit notes were raised on the di­rec­tions of Karti Chi­dambaram to show some trans­ac­tion which in fact did not oc­cur,” the ED al­leged. It said the money so re­ceived by as­so­ci­ated en­ti­ties was chan­nelled back into ASCPL. “The funds re­ceived by ASCPL were in­vested and ASCPL also pur­chased shares of Vasan Health Care. A part of these shares was sold at a profit of nearly Rs 41 crore. ASCPL also earned Rs.18.49 crore from sale of shares in an­other com­pany for an amount of Rs 29.49 crore. These funds aris­ing from sale of laun­dered prop­erty is also prop­erty in­volved in money laun­der­ing,” it said.

Of­fi­cials said they will get is­sued Let­ters Roga­to­ries (ju­di­cial re­quests) from a com­pe­tent court for le­gal for­mal­i­sa­tion of the at­tach­ment of the for­eign as­sets.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.