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GUWAHATI: Following the case of INX Media, P Chidambaram, former Finance Minister, was granted bail on Tuesday, 22nd October, 2019 by the Supreme Court. But Mr Chidambaram will not be released as he remains in the custody of the Enforcement Directorate.
Mr Chidambaram, arrested by the Central Bureau of Investigation (CBI) on August 21, 2019, had been in judicial custody in Delhi's Tihar jail until last week, when he was handed over to the Enforcement Directorate.
The apex court said that, the 74-year-old Congress leader has been granted bail in the CBI case but will remain in the Enforcement Directorate's custody till October 24, 2019.
The order was delivered by a bench of Justices R. Banumathi, A.S. Bopanna and Hrishikesh Roy, which directed him not to leave the country without permission.
The court also directed Chidambaram to furnish a personal bond of Rs 1 lakh and two sureties of like amount each.
On October 18, 2019, the court had reserved its order on the former minister’s plea.
A Delhi court on Monday, October 2019 took cognizance of the charge sheet filed against former Finance Minister P. Chidambaram in the INX Media case. The court asked for the former minister to be presented before it on October 24, 2019.
The court also issued summons to all other accused charge sheeted in the case. However, the date of their appearance will be given later.
The Central Bureau of Investigation (CBI) on October 18, 2019 filed a charge sheet in the case against Chidambaram and his son Karti and others. The charge sheet filed by the agency names 14 accused including Peter Mukerjea, Karti Chidambaram, P. Chidambaram, Karti’s accountant Bhaskar, and some bureaucrats. The agency has also named firms INX Media, Chess Management and ASCL.
Chidambaram and his son Karti Chidambaram were named in the case by Peter and Indrani Mukerjea, who are currently in jail in Mumbai in connection with the murder of Indrani’s daughter Sheena Bora.
It may be mentioned that, Sheena Bora, an executive working for Mumbai Metro One based in Mumbai, went missing on 24 April 2012. In August 2015 Mumbai Police arrested her mother Indrani Mukerjea, her stepfather Sanjeev Khanna, and her mother's driver, Shyamvar Pinturam Rai, for allegedly abducting and killing her and subsequently burning her corpse.
The ED too had filed a money laundering case against Chidambaram in 2017.
What was INX Media Case?
The INX Media case is an ongoing high-profile money laundering investigation in India. It involves allegation of irregularities in foreign exchange clearances given to INX Media group for receiving overseas investment in 2007. P. Chitambaram was union finance minister at the time. His son Karti Chidambaram has been implicated by the investigating agencies.
INX Media, founded by media entrepreneurs Indrani Mukherji along with husband Peter Mukerjea, allegedly violated foreign investment laws. INX Media had permission to source foreign investments to the tune of ₹4.62 crore but it has allegedly received funds worth ₹305 crore (US$44 million).
In March 2007, INX Media had approached the Chairman of Foreign Investment Promotion Board (FIPB), for permission for Foreign Direct Investment (FDI) from three non-resident investors based in Mauritius. This money was sought for creating and operating a number of television channels under the banner of INX Media. The application to the FIPB mentioned its intention to "make a downstream financial investment to the extent of 26 per cent of the issued and outstanding equity share capital of INX News Private Limited."
The FIPB approved the proposal for FDI inflow of Rs. 4.62 crore, but did not approve the downstream investment. However, according to the CBI, the company "deliberately and in violations of the conditions and approval", carried out the downstream investment. Moreover, it generated FDI exceeding Rs. 305 crore "by issuing shares to foreign investors at a premium of more than Rs 800 per share."
When the Income Tax Department sought clarifications on the matter in February 2008, INX Media allegedly sought to evade the investigation by approaching Karti Chidambaram to leverage his family name The CBI alleged that Karti Chidambaram received kickbacks to the tune of ₹10 lakh for his assistance, via his consulting firm Advantage Strategic Consulting Ltd.
Timeline of the entire INX Media case:
2010: The Enforcement Directorate, a financial crime fighting agency, registered a case under Foreign Exchange Management Act (FEMA) for diverting foreign direct investment by three Mauritius-based companies in INX Media to its subsidiaries without prior approval of the FIPB.
2013: The investigation was halted without explanation.
September 2015: The Mumbai office of the Enforcement Directorate indicated that it would reopen the 2010 FEMA case under the Prevention of Money Laundering Case, 2002.
May 15, 2017: The Enforcement Directorate filed a case against Karti Chidambaram, INX Media and its former directors, Peter Mukerjea and Indrani Mukerjea, and a few others for money laundering.
June 16, 2017: The Foreigner Regional Registration Officer (FRRO) and the Bureau of Immigration, which comes under the Union Home Ministry, issues a look out circular (LOC) against Karti Chidambaram.
August 10, 2017: The Madras High Court stays the LOCs issued against Karti Chidambaram and four others.
August 14, 2017: The Supreme Court stays Madras High Court order staying LOC issued against Karti Chidamabaram.
October 2017: P Chidambaram conveyed to the Supreme Court of India that the case is a "politically-motivated vendetta" against him and his son.
November 20, 2017: The Supreme Court allows Karti Chidambaram to visit Britain for daughter's admission.
December 8, 2017: Karti Chidambaram moves the Supreme Court challenging the summons issued by the CBI against him in the Aircel-Maxis deal case.
February 16, 2018: Karti Chidambaram's CA S. Bhaskararaman arrested for allegedly assisting him to manage his wealth in India and abroad.
March 2018: Indrani Mukerjea told the CBI that a $1-million deal had been struck between Karti Chidambaram and the Mukerjeas to secure FIPB approval in favour of INX Media.
October 2018: The Enforcement Directorate (ED) seized assets of Karti Chidambaram worth Rs 54 crore, including properties in New Delhi, Ooty, UK and Bercelona in relation to the INX Media case.
July 11, 2019: Jailed Indrani Mukerjea turns approver in the case and accepts the conditions put on her before a judge.
August 20, 2019: Delhi HC rejects bail applications of P Chidambaram.
October 22, 2019: P Chidambaram was granted bail on Tuesday by the Supreme Court. But Mr Chidambaram will not be released as he remains in the custody of the Enforcement Directorate.