CBI arrests Karti Chidambaram from Chennai over FEMA violation in INX Media money laundering case

The Central Bureau of Investigation (CBI) on Wednesday arrested Karti P Chidambaram, the son of former finance minister P Chidambaram in connection with the INX Media money laundering case.

CBI had said that Karti is accused of receiving Rs 10 lakh from INX Media. “Karti ‘used’ his influence to manipulate a tax probe against INX Media in a case of violation of FIPB conditions to receive investment from Mauritius," CBI said.

Karti was earlier grilled by the Enforcement Directorate in connection with the INX Media money laundering case. 

Karti deposed before the investigating officer (IO) as per the scheduled summons. The central agency had earlier summoned Karti Chidambaram on Feb 2 after which he informed them that he would be unable to depose as he had an interlocutory application pending in the Supreme Court in this case.

The CBI and the ED had carried out a series of raids on the houses and offices owned by the Chidambaram. Karti Chidambaram was questioned several times by the ED. A lookout notice, which prevents a passenger from travelling abroad, was issued against him as the agencies suspected that he would try to close foreign accounts where he had parked the money from the kickbacks.

In November, the Supreme Court allowed Karti Chidambaram to go to the UK for his daughter's admission in the Cambridge University. His father was not available for comments but he had earlier denied involvement of his son in any case.

The Congress labeled his arrest as "vendetta" and "diversionary tactic" by the Modi government to hide its scams and "mal-governance". Karti Chidambaram's arrest would not deter the party from speaking the truth to hold the government accountable, the party's communications in-charge Randeep Surjewala said.

The CBI is also probing the alleged irregularities in grant of the FIPB clearance to the Aircel-Maxis deal in 2006. According to the CBI, INX Media clearly states in its records that Rs 10 lakh was given to Advantage Strategic Consulting (P) Limited, a firm "indirectly" owned by Karti, for management consultancy charged towards FIPB notification and clarification.

The FIR also alleges that invoices of approximately Rs 3.5 crore were raised in favour of INX group in the name of other companies in which Karti had substantial interests "directly or indirectly". 

The agency has registered an FIR against Karti, his company Chess Management Services, the Mukerjeas, INX Media, Advantage Strategic Consulting Services and its Director Padma Vishwanathan. The allegations levelled by the CBI are based on the information given by "source", the FIR has claimed. 

The agency had registered a case under the provisions of Prevention of Money Laundering Act (PMLA) against Karti and others in May last year. ED had lodged an Enforcement Case Information Report (ECIR) against the accused named in the CBI FIR which included Karti Chidambaram, INX media and its directors, Peter and Indrani Mukerjea, and others.

CBI had probed Karti twice in August last year for allegedly taking money from INX media then owned by businessman Peter and his wife Indrani with respect to influence public servants in probe into foreign investments in the company from three Mauritius-based entities.