Connect with us


Karti Chidambaram Arrested. What is the INX Media Case?



The CBI on Wednesday arrested Karti Chidambaram, son of former Finance Minister P Chidambaram, in connection with its probe in the INX media case.

Karti, who contested from Sivaganga in the 2014 Lok Sabha elections but lost, was arrested at Chennai airport at around eight in the morning when he returned from the United Kingdom in connection with a corruption case wherein he allegedly influenced officials of the finance ministry when his father was the Union finance minister.

He was put on a Delhi-bound flight and brought to the agency headquarters where the CBI is completing necessary formalities including a medical test before producing him before a designated CBI court here in the evening.

The agency did not produce him for before a local magistrate in Chennai for his transit remand since the probe agency has an all-India jurisdiction.

An FIR filed by the CBI on May 15 last year had alleged irregularities in the FIPB clearance to INX Media for receiving overseas funds to the tune of Rs 305 crore in 2007 when Chidambaram was the Union finance minister.  It is alleged Karti Chidambaram had received funds to the tune of Rs 10 lakh in the case, they said.

The ED has also registered a money laundering case. The CBI is also probing the alleged irregularities in grant of the FIPB clearance to the Aircel-Maxis deal in 2006.

The Case in Detail:

In May 2017, the Enforcement Directorate had lodged an Enforcement Case Information Report (ECIR) – a police FIR equivalent – against junior Chidambaram, INX Media and its directors, Peter and Indrani Mukerjea, along with a couple of others under the provisions of the Prevention of Money Laundering Act (PMLA).

Based on the information provided by the ED, the CBI subsequently filed an FIR against the accused mentioned above, alleging irregularities in the Foreign Investment Promotion Board (FIPB) clearance granted to INX Media in 2007 for receiving overseas funds to the tune of Rs 305 crore when Chidambaram was the finance minister.

In March 2017, INX Media had approached the Chairman of FIPB seeking permission for issuing equity shares to three non-resident investors based in Mauritius through the foreign direct investment (FDI) route. This money, according to the FIR, was sought for creating and operating a number of television channels. The application to the FIPB also mentioned its intention to “make a downstream financial investment to the extent of 26 percent of the issued and outstanding equity share capital of INX News Private Limited”.

A few months later, the FIPB board approved INX’s proposal, specifically an FDI/NRI inflow of Rs 4.62 crore, but did not approve the proposed downstream investment. So the FIR primarily alleges that “INX Media deliberately and in violations of the conditions and approval” went ahead with the downstream investment and generated FDI exceeding Rs 305 crore in the company “by issuing shares to foreign investors at a premium of more than Rs 800 per share” between August 2007 and May 2008.

When the Income Tax department sought clarification on the above in February 2008, INX Media allegedly sought to wriggle out of the mess by offering kickbacks to Karti to leverage on his family name to scuttle the probe.

The CBI said that Karti had received funds to the tune of Rs 10 lakh in the case – during its searches at the homes and offices of junior Chidambaram, sleuths reportedly recovered vouchers for this amount issued in favour of Advantage Strategic Consulting (P) Limited, a firm “indirectly” owned by him. But some sections of the media are now reporting that there is new evidence that he had received a much fatter kickback.

Continue Reading


It’s a Four; Lalu Yadav Convicted in Yet Another Case

Judge Shiv Pal Singh pronounced Yadav and 18 other accused in the case guilty and acquitted 12 accused.



A special CBI court in Ranchi on Monday convicted RJD chief and former Bihar chief minister Lalu Prasad Yadav in the fourth case of fodder scam in which he figured as an accused.

Former Bihar CM Jagannath Mishra was acquitted by the court, which will pronounce the sentences on Wednesday.

The verdict in the Dumka treasury case of Bihar’s Rs 1,000-crore fodder scam came as a jolt to RJD, Bihar’s main Opposition party that has the largest number of MLAs in the state Assembly.

Before this, Yadav, 69, has been convicted in three other cases of the scam that was unearthed in the mid-1990s when he was chief minister and had forced him to step down in 1997.

Judge Shiv Pal Singh pronounced Yadav and 18 other accused in the case guilty and acquitted 12 accused.

The case (RC 38A/96) pertains to fraudulent withdrawal of Rs 3.76 crore from the government treasury in Dumka, presently in Jharkhand, even though the withdrawal limit was fixed at just Rs 1.50 lakh.

Officials of the state animal husbandry department, some bureaucrats of the then undivided Bihar government and suppliers of animal food had colluded with politicians to withdraw the funds from the treasury through 96 fake vouchers between December 1995 and January 1996.

Yadav was the chief minister of Bihar at the time.

Special CBI courts in Ranchi have earlier held Yadav guilty in three other cases of the scam.

He was handed a five-year jail term in the Chaibasa treasury case in September 2013; a jail term for three years and a half in the Deoghar treasury case in December 2017; and a jail term for five years in another case linked to the Chaibasa treasury in January last.

Continue Reading


Not Yet Over for Raja, Kanimozhi in the 2G Case; ED Moves Delhi HC

ED, in its charge sheet, had alleged that Rs 200 crore was paid by Swan Telecom (P) Ltd (STPL) promoters to DMK-run Kalaignar TV.



The Enforcement Directorate on March 19 moved the Delhi High Court challenging a special court order acquitting former telecom minister A Raja, DMK MP Kanimozhi and others in the money laundering case arising out of the 2G scam.

Besides Raja and Kanimozhi, the special court had on December 21 last year acquitted 17 others, including DMK supremo M Karunanidhi’s wife Dayalu Ammal, Shahid Balwa and Vinod Goenka of STPL, Asif Balwa and Rajiv Aggarwal of Kusegaon Fruits and Vegetables Pvt Ltd, film producer Karim Morani, P Amirtham and Sharad Kumar, Director of Kalaignar TV.

The ED, in its charge sheet, had alleged that Rs 200 crore was paid by Swan Telecom (P) Ltd (STPL) promoters to DMK-run Kalaignar TV.

On the same day, the trial court had acquitted Raja, Kanimozhi and 15 others, including former Telecom Secretary Siddharth Behura, Raja’s erstwhile private secretary R K Chandolia, Swan Telecom promoters Shahid Usman Balwa and Vinod Goenka, Unitech Ltd MD Sanjay Chandra and three top executives of Reliance Anil Dhirubhai Ambani Group (RADAG) — Gautam Doshi, Surendra Pipara and Hari Nair, in the CBI’s 2G case.

The CBI had alleged that there was a loss of Rs 30,984 crore to the exchequer in allocation of licences for the 2G spectrum which were scrapped by the top court on February 2, 2012.

Special Judge O P Saini, however, had then held that the prosecution had “miserably failed” to prove the charges.

The special court, which was set up on March 14, 2011, for hearing 2G cases exclusively, had also acquitted Essar Group promoters Ravi Kant Ruia and Anshuman Ruia and six others in a separate case arising out of the 2G scam probe.

The first case, prosecuted by CBI, had 17 accused, while the second matter, pursued by ED, had 19 undertrials. The third one had eight accused including Essar promoters.

In the CBI case, Raja, Kanimozhi and 15 others were tried under provisions of the IPC and the Prevention of Corruption Act dealing with offences of criminal conspiracy, cheating, forgery, using as genuine fake documents, abusing official position, criminal misconduct by public servant and taking a bribe.

Continue Reading


On an Apology Seeking Spree, Kejriwal Now Apologises to Gadkari

Delhi CM Arvind Kejriwal wrote to Union Transport Minister Nitin Gadkari expressing regret over certain statements he made against the BJP leader.



Delhi Chief Minister Arvind Kejriwal and his deputy Manish Sisodia have gone on an apology spree.

After tendering an apology to Punjab leader Bikram Singh Majithia, they have tendered an apology to advocate Amit Sibal, son of former Union Minister Kapil Sibal and Union Transport Minister Nitin Gadkari in a criminal defamation case filed by them.

Delhi Chief Minister Arvind Kejriwal also wrote to Union Transport Minister Nitin Gadkari expressing regret over certain statements he made against the BJP leader.

Kejriwal and Gadkari also submitted a joint application today before the court seeking withdrawal of the defamation case filed against the AAP leader.

Kejriwal and Sisodia apologised for making unfounded allegations against Sibal in a letter which was submitted before Additional Chief Metropolitan Magistrate Samar Vishal.

Sibal and the AAP leaders also filed a joint application in the court seeking withdrawal of the case filed in 2013.

Continue Reading

Also In The News