TIMELINE OF THE INX MEDIA CASE
AUGUST 8, 2006: INX Media Private Limited is incorporated MARCH 13, 2007: INX Media applies to Foreign Investment Promotion Board (FIPB) for stake sale to foreign entities
MAY 18, 2007: FIBP recommends to then finance minister P Chidambaram inflow of ~4.62 crore; says INX Media will have to apply afresh for investment in INX News FEBRUARY, 2008: Income Tax department initiates probe as INX Media got ~305 crore from offshore entities and made downstream investment in INX News also
JUNE 26, 2008: On suggestion of Karti’s company, Chess Management, INX Media justifies its action and says it got premium of more than ~800 on shares it sold to foreign investors and that the downstream investment was approved by the FIPB
MAY 15, 2017: CBI registers FIR, raids properties, alleges Advantage Strategic Consulting, a firm indirectly controlled by Karti, and other companies got ~3.5 crore for services by Chess Management; CBI also alleges Karti influenced the public servants of FIPB, a unit under the finance ministry, to resolve the case amicably AUGUST 2017: Karti is grilled by the CBI for more than eight hours FEBRUARY 2018: Indrani spills beans before the ED and the CBI on Karti’s involvement in the case FEBRUARY 28, 2018: Karti is arrested in Chennai The Central Bureau of Investigation (CBI) arrested Karti Chidambaram in a case of corruption from the Chennai airport on his return from London on Wednesday morning.
A CBI spokesperson confirmed that Karti, the son of former finance minister and senior Congress leader P Chidambaram, was arrested in what has come to be known as INX Media money-laundering case. The case was registered in May 2017. A look at the case and parties involved: Mumbai, through its then director Indrani Mukerjea
through its then director Pratim aka Peter Mukerjea
Chess Management Services (Private) Limited through its director Karti P Chidambaram through its director Padma Vishwanathan (the CBI has alleged that this company was indirectly controlled by Karti Chidambaram)
of Union ministry of finance
was incorporated on August 8, 2006 with the purpose of creating, operating, managing and broadcasting a bouquet of TV channels. The company applied to Foreign Investment Promotion Board on March 13, 2007 for permission to issue shares to three non-resident investors under the Foreign Direct Investment route. The company said shares were being issued at the face value of ~10 and that it would invest (26% equity) in INX News Pvt Ltd (this is known as downstream investment)
the FIPB considered the proposal of INX Media and approved an investment of ~4.62 crore under the FDI route but ruled that for the ‘downstream investment’ from INX Media to INX News, a separate approval is required and didn’t approve the downstream investment into INX News
The
Enforcement Directorate is looking into the money laundering aspect and where the alleged ‘proceeds of crime’ went
The CBI had registered the FIR on charges of criminal conspiracy, criminal misconduct, and getting gratification by illegal corrupt means in order to influence public servants.
The Chidambarams have said the case is motivated by “political vendetta”, and have asked why none of the six secretaries who were members of the FIPB have been named as accused if the case involves violation of foreign investment rules by the body.