New Delhi: The Enforcement Directorate Thursday said it wants an expeditious trial against Congress leader P Chidambaram in two money laundering cases, Aircel-Maxis deal and INX Media, ”as it has submitted the required sanction for prosecution against the former Union finance minister before a designated court.
The federal probe agency had filed a chargesheet in the Aircel-Maxis case in 2018 and in the INX Media case in 2020 at the special Prevention of Money Laundering Act (PMLA) court in Delhi (Rouse Avenue) and the court took their separate cognisance in 2021.
However, in November 2024, the Supreme Court directed (in the ED vs Bibhu Prasad Acharya case) that sanction for prosecution is mandatory in a PMLA chargesheet, similar to such an approval furnished while filing a chargesheet under the Criminal Procedure Code (CrPC).
After this judgement, many accused charged under PMLA challenged the proceedings in multiple legal forums, leading to a delay in the trial including in these cases against P Chidambaram.
“To counter such delay and to comply with the judgement of the Hon’ble Supreme Court, ED has swiftly initiated remedial actions by seeking prosecution sanctions in all such prosecution complaints involving public servants,” the ED said in a statement.
The agency said it sought the sanction for prosecution of Chidambaram from the competent authority which was obtained on February 10, along with a required order under section 197 of CrPC (Section 218 of Bharatiya Nagrik Suraksha Sanhita) for prosecuting the former Union minister in the two money laundering cases.
“The prosecution sanction order has been placed before the Hon’ble Special Court, Rouse Avenue by ED to expedite the trial in the case,” the agency said.
P Chidambaram and his son Karti Chidambaram have always denied wrongdoing in these cases alleging it was a political witch hunt against them by the BJP-led central government.
P Chidambaram was named as accused number 6 in the Aircel-Maxis case while he was arraigned as accused no. 1 in the INX Media deal case chargesheet.
The ED filed a PMLA case in the Aircel-Maxis deal in 2012 taking cognisance of a CBI FIR of October 2011. It has filed two charge sheets in the case.
It is alleged by the ED that the former Union minister granted FIPB approval to Aircel-Maxis in lieu of quid pro quo as foreign investor (Maxis) applied for its foreign direct investment (FDI) approval to the tune of USD 800 million (Rs 3,565.91 crore). The competent authority for this approval was the Cabinet Committee on Economic Affairs (CCEA).
“However, as part of a larger conspiracy, approval was fraudulently and dishonestly granted by the then finance minister P Chidambaram on 20.03.2006 who was competent to consider and approve FDI proposals involving total investment of Rs 600 crore or less,” the ED said.
Probe found, as per the ED, that “illegal” gratification of Rs 1.16 crore was received by his son and Congress MP Karti Chidambaram in his companies, named Advantage Strategic Consulting Pvt Ltd (ASCPL) and Chess Management Services.
The agency claimed there were financial transactions between the father and the son and funds of ASCPL were spent “for and on behalf of” P Chidambaram.
The INX Media money laundering case of 2017 was also filed based on a CBI FIR lodged in that year and the ED filed two chargesheets in this case and also naming Karti as an accused.
The probe pertains to the grant of Foreign Investment Promotion Board (FIPB) approval to INX Media during the tenure of P Chidambaram as the Finance Minister.
The ED alleged that in consideration for granting and subsequently regularising the FIPB approval, “illegal” gratification was received through entities “beneficially” owned/controlled by Karti Chidambaram.
These amounts were routed through shell companies including ASCPL and associated entities, which were under direct or indirect control of and beneficially owned by Karti Chidambaram, it said.
“These funds were layered and integrated through the investment in shares of Vasan Health Care and AGS Health Care and subsequently multiplied throughthe sale of shares and overseas investments,” it claimed.
Karti Chidambaram and his close associates acted on behalf of P Chidambaram, interacted with people of INX Media regarding FIPB approval matters and “collected” proceeds of crime, the agency alleged.
The funds were also utilised for deposits in bank accounts and for investment in movable and immovable properties in India and abroad in the names of shell entities and associates, it said.
