The Central Bureau of Investigation has arrested Karti Chidambaram, son of former finance minister P Chidambaram for allegedly taking bribes to get clearance for TV venture INX Media to access foreign investment. The arrest is apparently based on statements made by INX Media promoters Peter and Indrani Mukerjea who have alleged that they paid Rs 3 Crore in bribe to Karti at the insistence of his father who was then in charge of the Foreign Investment Promotion Board.
Indrani recorded a statement before a magistrate under Section 164 of CrPC, which is admissible as evidence in court and can put Chidambaram senior in legal bother. The Enforcement Directorate will probably also seek Karti's demand once the CBI is over with its custodial interrogation. After his arrest in Chennai upon return from London, Karti was brought to Delhi and produced before a court that remanded him in CBI custody for a day. The agency alleges that in March 2007. INX Media breached the condition on which it had been allowed by FIPB to raise 46 per cent equity through issue of shares.
The company got in Rs 305 Crore by issues shares at a premium against the permission to raise Rs 4.62 Crore by issuing shares at face value. Additionally, it also bypassed FIPB to make 26 per cent downstream investment in INX News Private Limited. According to Indrani's statement, P Chidambaram told the Mukerjeas to help Karti's business and make foreign remittances for this purpose. The statement also said they met him in Hyatt in New Delhi where a demand for illegal gratification of $1 million was made. Indrani also reportedly told Judicial Magistrate that she had paid an amount of $700,000 abroad in favour of Karti's companies.
Both, the CBI and ED are further investigating the channel of payment of the “remaining” bribe allegedly paid by the Mukerjeas to Karti. The FIR however, does not name Chidambaram, only stating that “deceitful and fallacious” foreign investment investment proposal was “favourably considered” and “approved” by the then officials of the finance ministry and the finance minister. Indrani's statement before the magistrate alleges that Karti suggested names of two companies- Chess Management and Advantage Strategic Consultancy Private Limited (ASCPL) as “alternatives” to make payments. CBI's FIR alleges payment of Rs 10 Lakh to ASCPL, which has in the meanwhile, claimed to have received payment of Rs 10 Lakh on account of “management consultancy”.
Congress leader Abhishek Manu Singhvi said, “This entire issue of confession has been leaked by them to the Press after 7 pm. I am astonished that they trust the media more than the judges. The question at hand is of arrest. If almost after a year they have got this confession, they could have easily confronted Karti with her (Indrani). Where is the justification to arrest? Why was this not made a part of the argument before the Court,” Abhishek Manu Singhvi.
