Karti Chidambaram arrested in INX money laundering case
What's the story
The CBI arrested Karti Chidambaram from the Chennai airport this morning in the INX money laundering case. There are allegations that Karti used his influence to let INX gain the approval of the Foreign Investment Promotion Board (FIPB) for foreign investments. Days ago, his CA S Bhaskararaman was arrested from Delhi. Congress called Karti's arrest a "classic diversionary tactic" of the Modi government.
Case
What is the INX money laundering case?
In 2007, INX had brought in Rs. 305cr through foreign investment, even though FIPB had given approval for only Rs. 4.62cr. Apparently, Karti, son of former finance minister P Chidambaram, influenced FIPB to allow the investment. For this, he purportedly received Rs. 90cr from INX as "consultancy charges." INX Media was formerly owned by Peter and Indrani Mukerjea.
Case
A case was lodged last year
The Chidambaram family is the ultimate beneficiary of Advantage Strategic Consulting Pvt, through which the "consultancy charges" were paid. In May 2017, ED registered a case against Karti for criminal conspiracy, cheating, seeking to influence a public servant, and criminal misconduct. But he has "categorically denied" any wrongdoings in the FIPB approval. The Mukerjeas were also named in the case.
Action
Karti has been actively detaching himself from suspicious properties
In the case, raids have been carried in premises belonging to the Chidambarams and Mukerjeas across cities. Karti was first grilled by the ED in January. Last week, he moved the SC seeking a stay on ED's summons. Meanwhile, there were reports that Karti has been on an overdrive. He has allegedly been de-attaching himself from bank accounts/properties that connect him to suspicious deals.