Here’s why Karti Chidamabaram has been arrested

Karti is the son of former finance minister P Chidambaram

GN Bureau | February 28, 2018


#P Chidambaram   #CBI   #Karti Chidamabaram   #Money Laundering  
Photo: Facebook/ Karti Chidambaram
Photo: Facebook/ Karti Chidambaram

Former finance minister P Chidambaram’s son Karti Chidambaram was arrested on Wednesday by the CBI in the INX Media case.

What is the case about?

Sleuths were keeping an eye on INX Media since January 2008 when the Financial Intelligence Unit (FIU-IND) flagged the foreign direct investment of over Rs 305 crore by three Mauritius-based companies in it.

Why was Karti arrested?

CBI officials said that Karti was arrested for not cooperating with investigations, reported Indian Express.

Is CBI the only law enforcement agency tackling this case?

No. The Enforcement Directorate (ED) too is probing Karti in a case under provisions of Prevention of Money Laundering Act (PMLA). Karti’s chartered accountant was arrested last week.

What is the exact nature of the case?

CBI has filed an FIR against Karti and INX Media among others for alleged irregularities in FIPB approval given to the media house for foreign direct investment (FDI) in 2007. The CBI has alleged that the INX Media’s FDI proposal was “deceitful and fallacious”, but was approved by the then finance minister P Chidambaram.

Are there other cases too?


Yes. The enforcement directorate is investigating a company associated with Karti in connection with the Aircel Maxis deal and FDI inflow into Vasan Healthcare.

The ED had found documents that showed Advantage Strategic Consulting, a company that CBI claimed is indirectly controlled by Karti, was paid Rs 10 lakh as consultancy fees to help it get FIPB approval in 2008. Karti’s father P Chidambaram was then finance minister, reported Indian Express.

What has been Karti’s stand?

Karti had earlier said: “I am being targeted politically and personally to besmirch the name of my father. They have not seized any documents and cannot prove any charges against me. I have not done anything wrong.”

And what did his father say?

“We know that Karti is being targeted only because he is my son and the real target is me. I understand the political motive behind the accusations and the timing of the story. I have nothing but pity for those who make these false accusations. Ultimately, truth will prevail,” The Mint quoted Chidambaram as saying.

“Karti runs a legitimate business, apart from managing inherited property. He has been an income tax assessee for many years. He has duly and regularly filed his income tax return, including a statement of assets and liabilities, every year. The assessments have been completed upto AY 2013-14 by the income tax department.

“The government’s aim is to silence my voice and stop me from writing, as it has tried to do in the cases of leaders of opposition parties, journalists, columnists, NGOs and civil society organisations. All I will say is I shall continue to speak and write,” he had said.

What did court say?

The Supreme Court on February 23 did not stay the summons issued by ED and asked Karti to appear before the ED on March 01.

What happens next?

A new case against Karti Chidambaram based on fresh evidence available may be filed, CBI sources told NDTV. 
 

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