ED submits report on Chidambaram's role in Aircel-Maxis case

03 Apr 2017 | Written by NewsBytes Desk; Edited by Supriya
Chidambarams brush with the law!

The Enforcement Directorate has submitted its report on P Chidambaram's alleged violation of the Foreign Investment Promotion Board's rules in the Aircel-Maxis case.

The report was submitted to the Supreme Court based on complaints filed by BJP leader Subramanian Swamy. The matter is scheduled for hearing on 2 May.

Meanwhile, the court also asked Swamy to submit "concrete evidence" against PC.

In context: Chidambarams brush with the law!

BackgroundAircel-Maxis deal and Chidambaram connect

In 2006, Malaysia-based company 'Maxis Communication' bought 74% stake in Indian telecom company, Aircel.

For the Aircel-Maxis deal, the then Finance Minister P. Chidambaram had given the 'Foreign Investment Promotion Board' (FIPB) clearance for Rs. 3500 crore deal to go through.

However, later it was alleged that FIPB clearance given was illegal as it was beyond the purview of FM Chidambaram's powers.

Why?Fingers raised against Chidambarams

In 2012, BJP Leader Subramanian Swamy accused former FM Chidambaram for misusing powers in Aircel-Maxis deal.

Swamy alleged Chidambaram couldn't have given FIPB clearance to deals above Rs. 600 crore; they're required to be vetted by Cabinet Committee of Economic Affairs.

He further alleged that Chidambaram delayed clearance until his son Karti received 5% stake in Aircel to benefit from Maxis's investment in Aircel.

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Chidambarams deny accusations; ED conducts raids

Sept 2014 - Dec 2015Chidambarams deny accusations; ED conducts raids

In September 2014, CBI initiated an investigation into allegations against Chidambaram.

In December 2014, CBI claimed Chidambaram had exceeded his brief by granting clearance to Aircel-Maxis deal.

Chidambaram vehemently denied allegations and reiterated that there was no infringement while granting FIPB clearance.

Finally, in Dec 2015, the Enforcement Directorate and IT officials carried out raids on Karti Chidambaram in relation to Aircel-Maxis deal.

Feb 2016Raids revealed Karti's business empire?

According to some reports dated February 2016, ED raids on Karti's residences and companies found documents which revealed Karti had business deals across 14 countries.

There was also a substantial increase in his wealth during 2006-2014, when his father P Chidambaram was FM.

However, the Chidambarams have repeatedly claimed raids were a "malicious onslaught" against the family and no incriminating evidence had been unearthed.

03 Apr 2017ED submits report on Chidambaram's role in Aircel-Maxis case

17 Apr 2017ED sends notice to Karti Chidambaram for Forex violation

The Enforcement Directorate has issued a show-cause notice to M/s Advantage Strategic Consulting Private Limited and Karti Chidambaram for alleged forex violations of Rs. 45 crore during the sale of shares of a company to overseas investors.

The ED said Karti "appears to be the controller and ultimate beneficiary in these transactions."

The ED said the transactions were in violation of the FEMA laws.

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25 Sep 2017ED attaches Karti Chidambaram's assets worth Rs. 1.16 crore

The Enforcement Directorate (ED) has attached bank assets worth Rs. 1.16 crore belonging to Karti Chidambaram over the alleged money laundering in the Aircel-Maxis case.

The CBI had issued a lookout notice against Karti, who is former finance minister P Chidambaram's son.

The agency had earlier accused Karti of attempting to close his bank accounts to evade action from investigators.

04 Oct 2017CBI: Karti tampered with evidence during visits abroad

The CBI has alleged in the SC that Karti Chidambaram, former FM P Chidambaram's son, has tampered with evidence related to an alleged corruption case by closing foreign bank accounts when he went abroad this year.

The CBI further said that a look-out circular should be issued against Karti as he had the "potential" to tamper with the evidence.

Next hearing is on October 9.