Peter, Indrani, Chidambaram, Lalu: 4’s company for CBI & IT
JOINT RAIDS Former finance minister and son Karti’s houses, offices searched in INX Media scam
Officers of the Central Bureau of Investigation (CBI) conducted simultaneous searches at the houses and business premises of former Union Finance Minister P Chidambaram, his son Karti, and the latter’s associates in Chennai, Mumbai and other places on Tuesday in connection with a Foreign Investment Promotion Board (FIPB) approval given to INX Media.
The directors of INX Media Indrani Mukherjea (of Sheena Bora murder case) and her husband Peter Mukherjea — both in jail now — and “unknown officials” of the Ministry of Finance have been named in the FIR registered by the CBI.
The FIR said that in 2007, INX Media had sought the approval of FIPB, which functions under the Ministry of Finance then headed by P. Chidambaram, for engaging in the business of creating, operating, managing and broadcasting a bouquet of television channels. The company sought permission for issuing shares at a face value of Rs 10 each. It also mentioned about the intention, subject to the provisions of applicable laws, to make a downstream financial investment to the extent of 26 per cent of the issued and outstanding equity of its share capital.
While recommending the proposal to the then Union Finance Minister, the FIPB did not approve the downstream investment. But contrary to the conditions of approval, the company deliberately made a downstream investment to the extent of 26 per cent in its capital. The firm generated over Rs 305 crore Foreign Direct Investment against the approved inflow of Rs 4.62 crore by issuing shares to foreign investors at a premium of more than Rs 800 per share.
A year later, the Income Tax Department got wind of this and sought clarifications from the FIPB, which sent a notice to INX Media seeking its explanation on the issue. The company “in order to wriggle out of the situation without any punitive action, entered into a criminal conspiracy with Karti P. Chidambaram, son of P. Chidambaram, the then Finance Minister of India, and promoter of Chess Management Services (P) Ltd, Chennai, so as to get the issues resolved/addressed amicably by influencing the public servants of the FIPB Unit of the Ministry of Finance”, the FIR stated.
The CBI alleged that illegal payments were made to Chess Management Services (P) Ltd in which Karti was the promoter-director through Advantage Strategic Consulting (P) Ltd, a firm that he controlled indirectly for the services rendered.
In the wake of former union minister P. Chidambaram’s property being raided by the Central Bureau of Investigation (CBI), Finance Minister Arun Jaitley while defending the investigative body has said the ‘day of reckoning’ is here, adding that all those involved will be accountable.
Addressing the media during the launch of the website ‘Operation Clean Money’ here, Jaitley said the raids have been carried out only after identifying a substantial reason.
“Unless there is a valid reason, the CBI and other bodies do not carry out such raids. Every step taken is done so expecting some result in return. The people in high positions acquiring assets through shell companies is not a small thing. Those responsible will be accountable,” said Jaitley.
Officials from the CBI raided the residence of P. Chidambaram and his son Karti in Chennai on Tuesday morning.
Soon after this, the senior Congress leader lashed out at the Centre, accusing it of using national agencies to target his son.
“FIPB approval is granted in hundreds of cases. The five Secretaries who constitute the FIPB, the officials of the FIPB Secretariat and the competent authority in each case are the public officials. There is no allegation against any of them. There is no allegation against me," he said in a statement.
Asserting that every case was processed according to law, Chidambaram added that the approval was granted or refused in accordance with the recommendations of the FIBP consisting of five Secretaries to the Government of India.
“The government, using the CBI and other agencies, is targeting my son and his friends. The government's aim is to silence my voice and stop me from writing, as it has tried to do in the cases of leaders of Opposition parties, journalists, columnists, NGOs and civil society organisations. All I will say is, I shall continue to speak and write," the senior Congress leader added.
Meanwhile, the CBI is expected to raid Chidambaram's native place in Karaikudi also.
The raids are happening at around 14 different locations in Chennai and also in the national capital in connection with the criminal misconduct in grant of FIPB approval.