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ED launches new probe against Karti in money laundering case
The latest probe under the Prevention of Money Laundering Act (PMLA) is based on a first information report (FIR), registered by the Central Bureau of Investigation (CBI) on January 1
The Enforcement Directorate (ED) has launched a fresh money laundering investigation against Karti Chidambaram, Congress MP and the son of former finance minister P Chidambaram, Advantage Strategic Consulting Pvt Ltd (ASCPL), a company with which he is allegedly associated, his aide, S Bhaskararaman, and others in connection to corruption allegations pertaining to the approval of Foreign Investment Promotion Board (FIPB), people familiar with the development said on Sunday.
The latest probe under the Prevention of Money Laundering Act (PMLA) is based on a first information report (FIR), registered by the Central Bureau of Investigation (CBI) January 1, in which Diageo Scotland, UK, Sequoia Capital, Mauritius, and Vasan Healthcare Pvt Ltd are also named along with unknown private and public people.
It is alleged that Diageo Scotland and Sequoia Capitals suspiciously transferred funds to ASCPL, an entity controlled by Karti Chidambaram and Bhaskararaman.
“We have launched a PMLA probe into the matter. The individuals concerned will soon be called for examination,” said an ED officer on condition of anonymity.
CBI’s case, and now ED probe, specifically focuses on two alleged payments to Karti Chidambaram and ASCPL.
The FIR stated, “Diageo Scotland, UK, used to import duty-free Johnnie Walker whisky and in April 2005, the India Tourism Development Corporation (ITDC), which had a monopoly over sale of imported duty-free liquor in India had put an embargo on the sale of the Diageo Group’s duty-free products in India, which resulted in huge losses to Diageo Scotland as 70% of its business in India pertained to the sale of Johnnie Walker whisky.”
“In order to lift the ban, Diageo Scotland approached Karti P Chidambaram and in furtherance of the conspiracy to lift the ban paid USD 15,000 to ASCPL,” the FIR added.
This money, CBI said, was received by ASCPL in the garb of consultancy charges after entering into a fake contract with Diageo.
In the second instance, the January 1 FIR stated that Sequoia Capital, Mauritius, had submitted an application for FIPB approval on October 13, 2008 for investing up to 26% in the share capital of Platinum Power Wealth Advisor Pvt. Ltd.
“The FIPB approval for FDI (foreign direct investment) inflow of ₹9.52 crorewas approved by P Chidambaram, the then finance minster on November 24, 2008,” the FIR said.
Inquiry revealed that at the time when the FIPB proposal of Sequoia Capital was moved, some suspicious share transactions at exorbitant price took place between Sequoia Capital and ASCPL through Vasan Health Care Pvt. Ltd.
“Instead of directly acquiring the shares of Vasan group, the shares were routed through ASCPL in order to benefit Karti P Chidambaram as a total of ₹22.50 crore was paid by Sequoia to M/s ASCL ( ₹7,500 per share) in lieu of these shares as against the purchase price of ₹30 lakh,” the CBI added.
“Inquiry has, therefore, revealed that the aforesaid share transactions at exorbitant price is not in the ordinary course of business but is a part of conspiracy to benefit Karti P Chidambaram who could influence the public servants,” it added.
HT reached out to Karti Chidambaram but did not get any response to request for comment.
Karti Chidambaram is already being investigated in INX Media case and facilitation of project visas for Chinese nationals for a power project of the Vedanta group in Punjab in return for bribes.
