P.Chidambaram (Former Finance Minister): Arrested by CBI

Hello Friends!

Hope you all are good and liking my previous posts. We all know that former Finance Minister ‘P.Chidambaram’ has been arrested on an arrest warrant issued by a competent court (CBI court). We will analyze under which charges he has been arrested by CBI.

Why P.Chidambaram has been arrested?

Former Finance Minister P.Chidambaram has been arrested by Central Bureau of Investigation under case of INX Media. Supreme Court has refused an urgent hearing of P.Chidambaram’s anticipatory bail plea. CBI and ED teams had started looking after his plea for anticipatory bail was denied by Delhi High Court.

INX Media Case:

1. ED in May 2017 had lodged an ‘Enforcement Case Information Report (ECIR)’- a police FIR equivalent against P.Chidambaram’s son Karti Chidambaram, INX Media and its directors, Peter and Indrani Mukherjea along with a couple of others under Provisions of Prevention of Money Laundering Act (PMLA).

2. P.Chidambaram is being probed by both CBI and ED for alleged irregularities in Foreign Investment Promotion Board (FIPB) clearance granted to INX Media in 2007 for getting overseas funds amount to around Rs. 305 crore. This was happened during his tenure as finance minister.

3. In March 2007, INX Media had approached chairman of FIPB, seeking permission for issuing equity shares to three non-resident investors based in Mauritius through Foreign Direct Investment (FDI). This money was sought for creating and operating a number of television channels.

4. FIPB board has approved INX’s proposal that is an FDI inflow of Rs. 4.62 crore but did not approve proposed downstream investment.

5. ZEE had agreed to buy INX Media’s entertainment channels under 9x brand name but called off deal due to non-completion of certain material conditions precedent.

What has been alleged in FIR:

1. FIR primarily alleged that “INX Media” had violated conditions and approval and generated FDI exceeding Rs. 305 crore in the company by issuing shares to foreign investors at a premium of more than Rs. 800 per share between August 2007 and May 2008.

2. CBI said that P.Chidambaram’s son Karti Chidambaram had received funds amounting Rs. 10 lakh issued in favor of Advantage Strategic Consulting Limited, a private firm ‘indirectly’ owned by him.

Connection with Peter and Indrani Mukherjea:

1. Peter and Indrani Mukherjea are currently in prison in connection with murder of Indrani’s daughter Sheena.

2. Peter and Indrani Mukherjea has co-founded INX Media in 2007. Both directors had been charged with entering into a criminal conspiracy with P.Chidambaram and son Karti Chidambaram to get foreign investment.

3. In March 2018, Indrani Mukherjea told CBI under Section 164 of CrPC that a deal of $ 1 million was struck between Karti Chidambaram and Mukherjea to secure approval from FIPB in favour of INX Media.

Arrest of Karti Chidambaram:

Karti Chidambaram was arrested by CBI in February last year in connection with INX Media case. He was released on bail in March. ED has attached properties of Karti Chidambaram worth Rs. 54 Crore.

What happened from May 2017 to till now in this case?

Date	How the case proceeded
1. May 15, 2017	(i) CBI files FIR, alleging irregularities in FIPB clearance to INX Media for receiving overseas funds to tune of Rs. 307 crore (ii) ED files money laundering case in the matter
2. June 2017	Foreigner Regional Registration officer (FPRO) and Bureau of Immigration under Union Home Ministry had issued look out notice against Karti
3. August 10,2017	Madras HC stays look out circular issued against Karti
4. August 14,2017	SC stays HC order
5. August 18,2017	SC asks Karti to appear before CBI on 23 August
6. September 11,2017	CBI tells SC about “possible transactions” abroad and 25 alleged offshore properties of Karti
7. September 22,2017	CBI tells SC that Karti was prevented from travelling abroad as he was allegedly closing Foreign Bank Accounts
8. October 9,2017	P. Chidambaram tells SC that it is a politically motivated vendetta against him and his son
9. November 2017	SC allows Karti to visit UK for admission of his daughter
10. December,2017	Karti moves SC challenging summons issued by CBI against him in ‘Aircel-Maxis Case’
11. February 2018	Karti was arrested by CBI
12. March 5,2018	Karti moves SC to challenge ED summons issued in Money laundering Case
13. March 15,2018	SC gives interim protection to Karti from arrest by ED
14. March 23,2018	Delhi HC grants bail to Karti in INX Media corruption Case
15. July 25,2018	HC grants interim protection to P.Chidambaram from arrest in both cases as he moves Delhi HC in May to seek anticipatory bail plea in corruption case
16. October 2018	ED attaches 50% of Chidambaram’s properties in Delhi
17. July 2019	INX Media owner Indrani Mukherjea turns approver
18. August 20,2019	HC dismisses anticipatory bail plea denies his appeal to stay order for 3 days so that he can appeal in SC
19. August 21,2019	SC dismissed anticipatory bail for urgent hearing and P. Chidambaram arrested

At last we can conclude that FIPB reviews application for FDI approvals. More the FDI comes in country, more is the economic growth. Revenue authorities verify whether funds making their way into Indian shores in form of FDI in any way tax evaded funds that gone out of India.

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P.Chidambaram (Former Finance Minister): Arrested by CBI