After the Central Bureau of Investigation (CBI), the Enforcement Directorate (ED) is set to file a case against former Finance Minister P Chidambaram’s son Karti Chidambaram and INX Media.
According to the sources the ED case will be registered under the Prevention of Money Laundering Act (PMLA) for alleged irregularities in grant of Foreign Investment Proposal Board (FIPB) approval to INX Media for foreign investment.
It is alleged that Karti received money from INX Media for using his influence to manipulate a tax probe against it in a case of violation of Foreign Investment Promotion Board (FIPB) conditions to receive investment from Mauritius.
The ED has received the CBI FIR and soon a case of money laundering will be registered against him.
ED had sent notices to 19 firms, besides INX Media, that allegedly did business with Karti Chidambaram’s two companies that includes:
- Advantage Strategic Consulting Private Limited (ASCPL) and
- Chess Management Services.
According to the reports after the raids in December 2015, the ED had sent summons to Essar Steel Limited, VST Tillers Tractors, Diageo Scotland Limited, and the Katra Group under the Prevention of Money Laundering Act (PMLA). These firms had allegedly made payments to Karti’s two firms during their Foreign Investment Promotion Board (FIPB) applications or clearances.
The Central Bureau of Investigation (CBI) had also raided houses and other premises of former finance minister P Chidambaram and his son Karti over alleged favors granted in foreign investment clearance to INX Media in 2007.
The searches were spread across Mumbai, Delhi, Chennai, and Gurugram. The raids took place at the Nungambakkam residence of P Chidambaram in Chennai.
It is understood that Karti has now sought more time to comply.