ED Sends Notices To 19 Firms, Besides INX Linked To Karti Chidambaram CompaniesMay 17, 2017 16:53
The Enforcement Directorate (ED) has sent notices to 19 firms, besides INX Media that did business with former Union Finance Minister P Chidambaram’s son Karti Chidambaram’s two companies - the Advantage Strategic Consulting Private Limited (ASCPL) and Chess Management Services.
After the raids in December 2015, the ED under the Prevention of Money Laundering Act (PMLA) had sent summons to the Essar Steel Limited, VST Tillers Tractors, Diageo Scotland Limited, and the Katra Group. It was alleged that these firms had made payments during their Foreign Investment Promotion Board (FIPB) applications or clearances.
Out of the 19 firms, one firm appeared before the ED, but however could not give the details of the services, Karti’s two firms offered. “The ASCPL and Chess Management Services sent invoices for professional services,” or “consultancy work”. According to ASCPL Director’s testimony to the ED, the firms would receive instructions, stating which companies to send the invoices to. The ASCPL Director had admitted that the company barely provided any services, said the ED officials.
On Tuesday, the Central Bureau of Investigation (CBI) raided the residences and other premises of Chidambaram and his son over alleged favors granted in foreign investment clearance to INX Media in 2007.
A senior police official said in Chennai, the searches were spread across Mumbai, Delhi, Chennai, and Gurugram. The raids took place at the Nungambakkam residence of P Chidambaram in Chennai. An FIR on Tuesday evening was issued against Karti by the CBI on charges of criminal conspiracy, cheating, receiving illegal gratification, influencing public servants and criminal misconduct.
It is alleged that Karti received money from INX Media for utilizing his influence to manipulate a tax investigation against it in a case of violation of FIPB conditions, to receive investment from Mauritius. His father issued a strong statement in response to say that the Centre was using the CBI and other agencies to target him and his son.
The Senior Congress leader said that the FIPB approval was granted in many number of cases.
Chidambaram stated that “The government, using the CBI and other agencies, is targeting my son and his friends...The government's aim is to silence my voice and stop me from writing, as it has tried to do in the cases of leaders of opposition parties, journalists, columnists, NGOs and civil society organizations.”