Karti is accused of receiving kickbacks to clear foreign investment worth around Rs. 300 crores in television company INX MediaCongress claims it to be BJP’s classic tactic to divertmedia

Karti Chidambaram, the son of Senior Congress leader P Chidambaram was arrested in Chennai on Feb, 28 in a corruption case. Using the influence of his father, who was then the Union finance minister, Karti is accused of receiving kickbacks to clear foreign investment worth around Rs. 300 crores in television company INX Media.

Reacting to the arrest, Congress Chief Spokesperson, R.S. Surjewala tweeted, “Classical diversionary tactic to hide scams & colossal corruption that is being exposed on a daily basis, be it Nimo+Choksi, D.D. Jewellers and Rotomac. Modi Govt continues its vendetta against Sh. P.Chidambaram. Won’t deter the Congress from bringing the truth to the people”.

Background

On 15 March 2007, INX media had sent an application to the Finance Ministry for an FIPB approval. In a FIPB meeting held on 18 May 2017, the board did not approve the investment by INX Media in INX News and also allowed FDI flow of only Rs 4.62 Crore.

However, contrary to FIPB approval, INX media allegedly violated the rules and made an investment of up to 26 per cent in INX News, with which they allegedly made over Rs 305 crore of FDI in INX Media, which was against the allowed foreign inflow of Rs 4.62 crore. They allegedly did that by issuing shares to foreign investors at a premium of over Rs 800 per share.

The CBI in its FIR has alleged that firms with links to Karti influenced FIPB approval for Rs 305 crore irregular investment in INX Media when his father was the finance minister. CBI also alleged that officers of the FIPB unit ignored serious illegalities on part of INX Media and also did undue favours because of Karti’s backing.

Central Bureau of Investigation’s Stand

The CBI filed an FIR against Karti and the Mukerjeas on charges of criminal conspiracy, cheating, receiving illegal gratification, influencing public servants and criminal misconduct.

The FIR mentions how INX Media paid Karti for the services rendered by him. The payments were made through different channels, received in the name of Advantage Strategic Consulting (P) Limited (ASCPL).

The CBI in its FIR also claimed that “such deceitful and fallacious deal was favourably considered by Ministry of Finance and Approved by the then Finance Minister.”

Following this, the ED too registered a money laundering case against Karti Chidambaram.