A provisional order under the Prevention of Money Laundering Act (PMLA) has been filed against him as well by Enforcement Directorate
The Enforcement Directorate has attached properties worth around 11.04 crores, belonging to Karti Chidambaram and others, in the INX media case. Of the four properties attached, one is an immovable asset, and the others are movable assets, in Karnataka’s Coorg district. According to the PMLA, the Enforcement Directorate can provisionally attach an offender’s property during their investigation.
Enforcement Directorate investigation
The agency said on Tuesday that, during the agency’s investigation, it was found that illegal gratification (proceeds of crime) and kickbacks were received directly and indirectly from INX Media Pvt Ltd to which P Chidambaram had granted FIPB approval, through many shell companies that were controlled and owned by another person indicted in the case, P Chidambaram.
The investigative agency stated that the total proceeds of the crime laundered over the past years are 65.88 crores. The money was transferred to overseas accounts and invested in overseas companies and properties that are directly and indirectly controlled by Karti Chidambaram.
Who is Karti Chidambaram?
Karti Chidambaram is an Indian politician and businessman, and son of former union minister and reputed congress member, P Chidambaram. He first ran in the 2014 general elections for the Sivaganga seat but was unsuccessful, losing to PR Senthilnathan. However, he was elected in the 2019 general elections for the seat in Tamil Nadu.
INX Media case
The INX media case is a money laundering investigation involving P Chidambaram, Karti Chidambaram, and INX media directors, Indrani and Peter Mukerjea. The investigation is regarding claims of irregular foreign exchange clearances given to INX Media (renamed 9X Media) for receiving foreign funding in 2007. These clearances were during the tenure of P Chidambaram as Union Finance Minister for the UPA government.
INX media and its directors allegedly violated overseas investment laws. They had been granted permission to source foreign funds of around 4.62 crores from the Foreign Investment Promotion Board (FIPB), however, it has allegedly received funds of around 305 crores instead. The investigative agencies say that P Chidambaram had a hand in granting the media firm FIPB permissions for such a vast inflow of funds.
Timeline of events
The Enforcement Directorate’s investigation into the case had initially begun in 2010 when a case was filed against INX media under the Foreign Exchange Management Act (FEMA) for diverting foreign funds to its subordinate organizations without prior approval of the Foreign Investment Promotion Board. Under the Foreign Exchange Management Act, the Enforcement Directorate can investigate activities against international exchange laws and investigate such firms. However, the investigation stopped in 2013 for unexplained reasons.
In 2015, the Mumbai office of the Enforcement Directorate reopened the investigation.
Initially, the CBI registered an FIR in 2017, for offenses committed under the Prevention of Corruption Act, 1988, and several provisions of the Indian Penal Code. Subsequently, the Enforcement Directorate filed its case and began investigations.
The investigative agency first seized Karti Chidambaram’s properties in 2018, which were worth around 54 crores. Earlier that year, he was arrested and spent 23 days in jail.
In 2019, P Chidambaram was arrested from his house after failing to appear before the CBI and Enforcement Directorate after receiving their notice. He was eventually granted bail by the Supreme Court after spending 105 days in Tihar Jail. Additionally, the Supreme Court had barred him from speaking to the press.
Karti Chidambaram has said that this is a BJP-led political vendetta against his family. The Enforcement Directorate investigation is ongoing.
