The Central Bureau of Investigation raided former finance minister and senior Congress leader P Chidambaram and his son Karti after the agency registered a case against Karti, Peter Mukerjea and Indrani Mukerjea, two private companies and unknown officials of ministry of finance for alleged corruption and criminal conspiracy for FDI approval for INX Media Pvt Ltd.
CBI has booked Karti Chidambaram, INX Media (P) Limited and its former Director Indrani Mukerjea, and its former director Peter Mukerjea, M/s Advantage Strategic Consulting (P) Limited and its Director Padma Vishwanathan and unknown officials of ministry of finance for alleged “criminal conspiracy”, cheating, and prevention of corruption act. It alleged that recommendation for FIPL proposal of INX Media was approved by P Chidambaram, FM at the time. It also added that INX Media, in a bid to wriggle out of the situation without any punitive action by the FIPB, entered into a criminal conspiracy with Karti in order to get the issue amicably resolved by influencing the public servants of the FIPB unit of the ministry of finance “by virtue of his relationship with the then finance minister.”
In its FIR, CBI said, “Contrary to the approval of FIPB conveyed through letter dated May 31, 2007 and condition mentioned therein, INX Media deliberately and in violation of the conditions of the approval made a downstream investment to the extent of 26 per cent in INX News without the specific approval of FIPB which included indirect foreign investment by the same foreign investors and generate more than £30.5 million in FDI in INX Media against the approval foreign inflow of £ 462,000 by issuing the shares to the foreign investors at a premium of more than Rs 800 per share.”
CBI adds that after receiving a letter from INX Media, officials of FIPB unit, by virtue of influence exercised over them by Karti “not only ignored the serious illegality on the part of INX Media on both the counts but also deliberately embarked on showing undue favour to INX Group by abusing their official position and advised the company to apply fresh to FIPB approval in respect of the downstream investment which had already been made by INX Media.”
FIPB officials also ignored the “request of department of revenue to investigate the matter.” CBI said, “Such deceitful and fallacious proposal was favourably considered by the officials of ministry of finance and approved by then finance minister.”
In similar misfortune, Lalu Prasad Yadav was alleged to be the beneficiary of £100 million worth of proxy land deals by income tax officials as they searched almost 20 locations in Delhi and Gurgaon to collect evidence for their case. Raids were conducted by nearly 100 tax officials and policemen. “People and businessmen connected to land deals involving Lalu Yadav and his family are being searched. There are allegations of benami (proxy) deals worth £100 million and subsequent tax evasion,” a senior official said.
The raids were conducted hours after Bihar Chief Minister Nitish Kumar said if the BJP or the central government has evidence of his partner's corruption, it should take action. The national party had accused Lalu, his daughter Misa Bharti, and sons Tejashwi and Tej Pratap Yadav, of prime roles in corrupt land deals in Patna, Delhi, and other cities.
