The Quint has exclusively accessed the affidavit filed by the Enforcement Directorate (ED) in the Supreme Court, which reveals that 54 cases of the Foreign Investment Promotion Board (FIPB) clearances are being investigated by the agency. All these FIPB clearances were given during the UPA I and II government.
The ED screened around 2,721 files related to the FIPB clearance. These files pertain to the period of May 2004 to 2009, and August 2012 to May 2014. During this period, P Chidambaram was the Finance Minister of the UPA government.
According to the affidavit, of the 2,721 files, the ED has shortlisted around 54 files related to the FIPB clearance given to different companies. Under the Prevention of Money Laundering Act (PMLA), the ED has also examined ‘the then Secretary, Additional Secretary, Deputy Secretary and Under Secretary’ of the Ministry of Finance.
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After conducting the initial probe on 54 shortlisted files, the agency alleges that in eight cases, FIPB clearances were wrongfully granted to the companies. The INX media scam is one of the eight cases which was referred by the ED to the CBI for registering an FIR under the Prevention of Corruption Act.
The ED is investigating the PMLA case related to the FIPB approval given to Aircel Ltd on 20 March 2006 by the then Finance Minister P Chidambaram, when the actual Competent Authority to grant FIPB approval was the Cabinet Committee on Economic Affairs (CCEA). As per the government Policy and FIPB guidelines – as applicable in 2006 – when the total foreign inflow is Rs 600 crore and above, the CCEA becomes the designated Competent Authority to give approval.
In the Aircel-Maxis case, however, the total foreign inflow was Rs 3,520 crore. In the affidavit, the ED has mentioned certain suspected financial transactions which were made after the FIPB approval to Aircel Ltd.
In the affidavit, the ED gives details about the evidence found against Karti of receiving illegal gratification in the Aircel-Maxis case.
On 28 February, Karti Chidambaram was arrested by the CBI under the Prevention of Corruption Act in the INX media case. The ED alleged that Karti Chidambaram, in lieu of money, assisted INX media in getting FIPB approval. P Chidambaram was the then Finance Minister.
Here are the details of evidence with the CBI and ED
It would be important to note that technically, vouchers, and not invoices, would bear the signature of the payee.
In this case, Peter Mukerjea being the payee, shouldn’t have had his signature on the invoices. In addition, the CBI, in its FIR, nowhere claims that these invoices have Peter’s signature. However, the ED claims otherwise. Agencies should clarify whether they have recovered vouchers or invoices during the raids in INX media case, as vouchers produced by the paying party have no standing in a court of law.
The investigating agency seems to be equipped with a barrage of questions pertaining to different cases which Karti Chidambaram will have to answer over a period of time. His father, former Finance Minister P Chidambaram, is also likely to be questioned by the agencies, as these FIPB approvals were given during his tenure.
However, the question is – will CBI and ED be able to prove their cases in court? As we have seen in the 2G Spectrum Case, the agencies claimed to have enough evidence against the accused to prove corruption, however, all of them were later acquitted by the court.
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