ED gets sanction to prosecute P Chidambaram; laundering probe based on FIRs by CBI

NEW DELHI: In what can potentially speed up the trial of P Chidambaram in the Aircel Maxis and the INX Media money laundering cases, the Enforcement Directorate on Thursday told a special PMLA court here that it had got the necessary nod from the home ministry for the prosecution of the former finance minister.

The Congress veteran's trial in the two cases, now around 15 years old, has been held up because of court cases challenging the agency's powers and the validity of several provisions of the Prevention of Money Laundering Act.


Both the cases were filed when UPA was in office.

In both the cases, the ED's money laundering probe is based on FIRs by CBI, which registered its first case in 2011 in the Aircel Maxis deal, where a quid pro quo was alleged against the former finance minister for "illegally" granting FIPB (foreign investment promotion board) approval for $800 million FDI.

In the case concerning INX Media, CBI registered its FIR in 2017 against his son Karti Chidambaram and others, and later in a prosecution complaint (chargesheet) filed in 2020, the agency made P Chidambaram "accused No 1". The other accused in the case are Karti, associates and several alleged shell companies.

In the INX Media alleged bribery deal, the agency said, it identified "proceeds of crime" of over Rs 65 crore and attached them through two orders, which have been confirmed by the adjudicating authority. In this case, the special court took cognisance of the chargesheet against P Chidambaram and Karti on March 24, 2021. However, trials against them have remained pending despite what ED has called "its best efforts".

In the other case related to FIPB approval for Aircel Maxis, ED has alleged that "as part of a larger conspiracy, approval was fraudulently and dishonestly granted by the then finance minister P Chidambaram on March 20, 2006."

The agency claimed that its investigation has revealed that "P Chidambaram granted FIPB approval to Aircel Maxis in lieu of quid pro quo".

Two prosecution chargesheets were filed against him in 2018 in the Aircel Maxis case. The special court in Rouse Avenue also took cognisance of the chargesheets, prima facie validating ED's findings.

"Prosecution complaint dated June 13, 2018, and a supplementary prosecution complaint dated Oct 25, 2018, was filed before the Special Court (PMLA), Rouse Avenue, New Delhi, wherein P Chidambaram was arraigned as 'accused A-6'. The special court vide its order dated Nov 27, 2021, took cognisance of the commission of an offence of money laundering," ED said, adding that it has since been making "all efforts to fast track the trial" in the case.

On INX Media, ED said: "It was revealed that, in consideration for granting and subsequently regularising FIPB approval, illegal gratification was demanded and received through entities beneficially owned/controlled by Karti Chidambaram." "The investigation revealed that such 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. These funds were layered and integrated through investment in shares of Vasan Health Care Pvt Ltd and AGS Health Care Pvt Ltd, and subsequently multiplied through sale of shares and overseas investments," it said.