What is the case against Chidambaram

P Chidambaram, former Finance Minister in the UPA government was arrested by the CBI (Central Bureau of Investigation) in a money laundering case of 2007. Who was once the most influential ministers during the 10 year long rule of the UPA government is behind the bars now waiting to be probed in the INX Media case. Here are the details about the case against Chidambaram.

The grounds of Chidambaram’s recent arrest

The case filed against Chidambaram that led to his arrest is related to the INX Media scam. This is a 2008 deal that threatens to put the ex-minister into a serious trouble along with his son Karti Chidambaram. Though Chidambaram has claimed that he has no connections with the companies that have received the alleged bribe money in return to issuing an undue foreign investment promotion clearance to INX Media, the High court has recently identified him as the kingpin of the said scam.

The details of the case against Chidambaram

The underline of the case against Chidambaram is the accusation that he has helped the founders of INX Media to prevaricate justice even after they had been found to violate the foreign investment laws of the country. In the year 2007, INX Media allegedly received foreign funding of Rs 305 crores whereas they had secured permission to raise only Rs 4.62 crores as shares. When the firm was questioned by the Financial Intelligence Unit in 2008, the founders of INX Media allegedly contracted the firm that Karti Chidambaram owned in order to sort out the issue.

The CBI now claims that rather than ordering to investigate into the said case, Chidambaram misused his powers through the Foreign Investment Promotion Board that was under him to grant fresh approval for the foreign funds that were already received by INX Media. The probe agency alleges that in return to the favors that Chidambaram did to INX Media, the kickbacks were routed to him through the Shell Companies connected to Karti Chidambaram.

In February 2018, Karti Chidambaram was arrested and kept in jail for 23 days for interrogation. In March 2018, Indrani Mukerjea, the promoter of INX Media confirmed the CBI that a deal worth $1 million took place between them and Karti Chidambaram for making the FIPB grant the approval favoring the INX Media. She also turned as an approver in the said case on July 11, 2019.

What is Chidambaram’s response to the allegations?

In defending his innocence, Chidambaram has claimed that neither he nor any one in his family was accused of any kind of offence and that both the ED and CBI did not file a charge sheet or FIR against anyone of them. The sources close to him also said the companies that are involved in the INX media scam are not connected to Chidambaram or his son. They also claim that there had been no money trail that is found routing the alleged kickbacks to Chidambaram.

What the Delhi High Court says?

When reading out the judgment, Justice Sunil Gaur said, "Facts of the case prima facie reveal that petitioner (Chidambaram) is the kingpin, that is, the key conspirator in this case,"