The Enforcement Directorate (ED) grilled Karti Chidambaram, son of senior Congress leader P Chidambaram, in the national capital on Thursday with their probe into the INX Media money laundering case.
Karti was summoned by the agency to appear before the Investigating Officer (IO) of the case on Thursday. He reached in the morning at the agency's office wherein he was grilled for almost eight hours.
He was summoned by the agency twice but he failed to appear and had sent his representative both times. His representative had met the investigating officer but he had subsequently asked him to appear himself.
The agency had registered a case under the provisions of Prevention of Money Laundering Act (PMLA) against Karti and others in May last year. ED had lodged an Enforcement Case Information Report (ECIR) against the accused named in the CBI FIR which included Karti Chidambaram, INX media and its directors, Peter and Indrani Mukerjea, and others.
ED is probing into alleged irregularities in the Foreign Investment Promotion Board (FIPB) clearance to INX Media for receiving overseas funds to the tune of Rs 305 crore in 2007 when P Chidambaram was the finance minister.
Earlier CBI had also grilled Karti twice in August last year allegedly taking money from a INX media then owned by businessman Peter and his wife Indrani with respect to influence public servants in probe into foreign investments in the company from three Mauritius-based entities.
Karti was also confronted with four other suspected accused in the case. The agency had also questioned three suspected associates of Karti—S Bhaskaraman, Ravi Vishwanathan and Mohanan Rakesh— in Delhi and one CBN Reddy in Chennai in connection with the case.
The four suspected accused —CBN Reddy, S Bhaskaraman, Ravi Viswanathan and Mohanan Rakesh-- are related to Advantage Strategic Consulting Private Limited and Chess Management Services Private Ltd both which was allegedly owned by Karti.
They all are linked to alleged case. It is alleged that Karti received money for using his influence to manipulate a tax probe against it in a case of violation of Foreign Investment Promotion Board (FIPB) conditions to receive investment from Mauritius.
The pertains to INX Media seeking investment from Mauritius and the investment was allowed by the FIPB with the condition that only Rs 4.62 crore could be received. For the investment in INX News Pvt Ltd, a separate proposal was required. "The company violated the conditions set by the FIPB and received investment to the tune of 26 percent in the capital which included foreign investment. The company generated more than Rs 305 crore of Foreign Direct Investment in INX Media against the approved inflow of Rs 4.62 crore by issuing shares to foreign investors at a premium of more than Rs 800 per share," the FIR stated.
