Enforcement Directorate files chargesheet against P Chidambaram, son Karti in INX Media case

Enforcement Directorate’s INX Media case was one of the cases in which Chidambaram was arrested last year. He was released on bail after spending 106 days in jail.

The Enforcement Directorate has filed charges against former finance minister P Chidambaram and son Karti in the INX Media case, people familiar with the development said. The charge-sheet was filed in special judge Ajay Kumar’s court on Tuesday.

PTI File Photo

The ED, a federal agency that investigates financial crimes and money laundering, has accused the 74-year-old veteran Congress politician and Karti of being beneficial owners of shell firms incorporated in India and abroad that received bribes.

There has been no statement from the ED detailing provisions of the money laundering law that the two Congress leaders that have been invoked in the charge-sheet. But the Enforcement Directorate has alleged in the past that nearly Rs 3 crore had been paid to Karti Chidambaram’s companies by INX Media co-founder, Peter Mukerjea. This money was allegedly paid at the behest of the senior Congress politician who was the finance minister when approvals to receive foreign investments were granted to INX Media.

P Chidambaram was arrested by the Enforcement Directorate in October last year when he was in Tihar jail. The arrest came around the same time that his bail application in a related case filed by the CBI was coming up for hearing. The Rajya Sabha MP was eventually released in December 2019 after spending nearly 105 days in Tihar jail.

The former Union minister and his son have repeatedly denied the allegations.

Asked about the charge-sheet filed by the Enforcement Directorate, Karti Chidabaram declined to say anything. “I will not comment until something is served to me formally,” he said.

The ED and CBI cases are linked to grant of Foreign Investment Promotion Board (FIPB) clearance to INX Media to receive overseas funds to the tune of Rs 307 crore in 2007, when the Congress politician was finance minister in the United Progressive Alliance (UPA) government.

Investigators have alleged that when Peter Mukerjea and wife Indrani met Chidambaram to get the foreign investment approvals, the minister told them to keep his son’s business interests in mind. At earlier court hearings, the ED has claimed that they had been able to identify payments of “Rs 3.09 crore by Peter Mukerjea to ASCPL (Advantage Strategic Consultancy Pvt Ltd) 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 agency had 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 has claimed.

The agency had, in February 2019, attached properties worth Rs 54 crore allegedly belonging to Karti in Spain, the UK and India.

Indrani Mukherjea, in her statement to CBI, has claimed that US dollars 5 million and US dollars 4,50,000 were transferred in overseas account of Congress leader in 2007 and 2009 respectively after getting money from INX’s foreign investors while a cash payment of Rs 1 crore was made to Karti in Delhi in 2009. HT has copy of her statement.