Karti Chidambaram’s firms helped INX group, says CBI

Karti Chidambaram was booked by the CBI for allegedly taking payments to influence then finance ministry officials to favour INX media, which was under the scanner for receiving foreign investments without approval of Foreign Investment Promotion Board.

Peter Mukherjea and Indrani Mukherjea, the directors of INX group are also accused in the case.

Among other named as accused are Chess Management services Private Limited whose director is Karti, Advantage Strategic Consulting Pvt Ltd through its director Padma Vishwanathan and other finance ministry officials.

In its FIR, CBI has alleged that Karti took payments for “getting the issues against INX group scuttled”.

According to the FIR , INX Media Private Limited approached Chidambaram through an application in 2007 to seek approval of FIPB to issue shares worth ~10. The shares were to be sold to three Mauritius firms according to the application submitted by INX.

The FIR stated that contrary to the FIPB recommendations “INX Media deliberately and in violation of the conditions of the approval made a downstream investment to the extent of 26% in the Capital of INX News Pvt Ltd without specific approval of FIPB which included indirect foreign investment by the same foreign investors and generated more than ~305 crore foreign direct investment in INX media against the approved foreign inflow of ~4.62 crore by issuing shares to the foreign investors at a premium of more than ~800 per share.” CBI has further alleged that ~3.5 crore were also raised in favour of INX group in the name of other firms in which Karti has “substantial interests directly or indirectly”. The FIR also states that INX group in its own record had mentioned the purpose of payment of ~10 lakh to ASCPL.