ED places prosecution sanction against Congress veteran Chidambaram in Aircel Maxis, INX Media cases
Former Finance Minister P Chidambaram is embroiled in a legal battle as the Enforcement Directorate seeks prosecution sanctions for money laundering linked to the Aircel Maxis and INX Media cases.
These prosecution sanction orders have been placed before the Rouse Avenue Special Court here in the national capital by the ED to expedite the trial in these cases.
The agency had initiated an investigation under the Prevention of Money Laundering Act (PMLA), 2002, based on the FIR registered by the CBI on 9 October 2011 in the Aircel Maxis case against Chidambaram for offences punishable under the Indian Penal Code, 1860, and the Prevention of Corruption Act, 1988.
In the case, ED said its investigation has revealed that the then Finance Minister, P. Chidambaram, granted Foreign Investment Promotion Board (FIPB) approval to Aircel Maxis in lieu of a quid pro quo.
"In the Aircel Maxis Deal, the foreign investor (Maxis) applied for approval of the government for FDI of USD 800 Million ( ₹3565.91 crore), for which the competent authority for approval was the Cabinet Committee on Economic Affairs (CCEA). However, as part of a larger conspiracy, approval was fraudulently and dishonestly granted by P Chidambaram on March 20, 2006, who was competent to consider and approve Foreign Direct Investment FDI) proposals involving total investment of ₹600 crore or less," reads ED statement.
The investigation has revealed that illegal gratification of ₹1.16 crore was received by Karti P Chidambaram (son of P Chidambaram) in his companies, Advantage Strategic Consulting Pvt Ltd (ASCPL) and Chess Management Services Pvt Ltd (CMSPL).
"Investigation has revealed financial transactions between P Chidambaram and Karti P Chidambaram. Investigation has also revealed that funds of ASCPL have also been spent for and on behalf of P Chidambaram."
Proceeds of crime amounting to ₹1.16 crores have been provisionally attached dated 23 September 2017, and the same has been confirmed by the Adjudicating Authority vide order dated 12 March 2018, said the agency.
Subsequently, the Prosecution Complaint under PMLA, dating back to June 2018, and the Supplementary Prosecution Complaint, dated October 2018, were filed before the Special Court (PMLA), Rouse Avenue Court, New Delhi, wherein P Chidambaram was arraigned as accused A-6.
The Special Court vide its order dated 27 November 2021, took cognisance of the commission of an offence of money laundering.
As per the ED, it has been making all efforts to fast-track the trial in the case.
The Supreme Court delivered a judgement on November 6, 2024 in the case "Directorate of Enforcement vs Bibhu Prasad Acharya, etc. Criminal Appeal Nos 4314-4316 of 2024" and held that the requirement of the prosecution sanction under section 197(1) of the CrPC is applicable to a complaint filed under section 44(1)(b) of the PMLA, 2002 also.
Subsequent to this judgment, many accused persons charged under PMLA, 2002 have challenged the trial proceedings in multiple legal forums, leading to a delay in the trial.
To counter such delays and comply with the Supreme Court's judgment, ED has swiftly initiated remedial measures by seeking prosecution sanctions in all such prosecution complaints involving public servants. Therefore, in light of the Supreme Court order, the sanction of P Chidambaram was sought from the competent authority in this case, and the sanction was obtained on 10 February 2026, in respect of P Chidambaram in respect of the offence of money laundering.
In the matter of INX Media Private Limited, the ED had initiated an investigation under PMLA, 2002, based on the FIR dated 15 May 2017, registered by the CBI against INX Media Pvt Ltd, INX News Pvt Ltd, Karti P Chidambaram and others for offences punishable under the Indian Penal Code, 1860 and Prevention of Corruption Act, 1988.
In the instant case, ED said, investigation has revealed that FIPB approval was granted to INX Media Pvt Ltd during the tenure of P Chidambaram as the Union Finance Minister.
It was further revealed that, in consideration for granting and subsequently regularising FIPB approval, "illegal gratification was demanded and received through entities beneficially owned and controlled by Karti P Chidambaram." "The investigation revealed that such amounts were routed through shell companies, including Advantage Strategic Consulting Pvt Ltd (ASCPL) and associated entities, which were under direct or indirect control of and beneficially owned by Karti P Chidambaram. These funds were layered and integrated through investment in shares of Vasan Health Care Pvt Ltd and AGS Health Care Pvt Ltd, and subsequently multiplied through the sale of shares and overseas investments," the ED said.
The investigation has revealed that Karti P Chidambaram and his close associates acted on behalf of P Chidambaram, interacted with INX Media personnel in connection with FIPB approval matters, and collected proceeds of crime arising therefrom.
"The proceeds were subsequently routed through shell companies incorporated for the purpose of laundering, layered through complex transactions across multiple jurisdictions without any genuine business activity, and structured to conceal the money trail. The funds were thereafter utilised for deposits into bank accounts and for investments in movable and immovable properties in India and abroad, in the names of shell entities and associates.
The total proceeds of crime have been quantified at approximately ₹65.88 crore, the agency said.
Subsequently, a Prosecution Complaint was filed before the Special Court (PMLA), Rouse Avenue Court on June 1, 2020, and cognisance was taken on 24 March 2021, wherein P Chidambaram (Accused -1), Karti P Chidambaram (Accused - 7) and eight other parties have been arrayed as accused.
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