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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Eight Cases Under PMLA Investigation, Say ED Sources
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.
We cannot divulge details of the remaining seven cases because it will jeopardise our investigation. In all seven cases, we have found the alleged involvement of Karti Chidambaram.Senior ED Officer
Enough Evidence Against Karti in PMLA Cases: ED
Aircel-Maxis Case
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.
- Aircel Televenture Ltd paid over Rs 26 Lakh on 11 April 2006 to a company – Advantage Strategic Consulting Pvt Ltd (ASCPL) – allegedly owned by Karti Chidambaram.
- Associates of Maxis, the purchaser of Aircel Ltd, had paid over Rs 90 lakh in tranches to a company – Chess Management Services Pvt Ltd – also owned by Karti Chidambaram.
INX Media 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
- The directors of INX media, Indrani and Peter Mukerjea, have testified before ED that Karti Chidambaram demanded one million dollars from them.
- Agencies have recovered four invoices during raids, worth approximately 7,00,000 USD, that were drawn by Advantage Strategic Consulting Pvt Ltd’s Singapore subsidiary, allegedly owned by Karti Chidambaram. These invoices bear Peter Mukerjea’s signature, as claimed by the ED.
- In a statement recorded by the CBI before a magistrate under Section 164 of CrPC, Indrani Mukerjea has confirmed payment of 7,00,000 USD abroad to Karti.
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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