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NEW DELHI:INX Media money laundering case: CBI arrests Karti Chidambaram for violating FEMA.

The development comes two days after a Delhi court sent his chartered accountant S Bhaskararaman to 14-day judicial custody in connection with the same matter.

The Central Bureau of Investigation (CBI) on Wednesday arrested Karti Chidambaram from Chennai for violating the Foreign Exchange Management Act. The matter is in relation to INX Media money laundering case.

The development comes two days after a Delhi court sent his chartered accountant S Bhaskararaman to 14-day judicial custody in connection with the same matter.

The money laundering case relates to Foreign Investment Promotion Board (FIPB) approval granted in 2007 for receipt of funds by INX Media when Karti’s father and senior Congress leader P Chidambaram was the Union finance minister during the previous UPA regime.

The Enforcement Directorate (ED), which has been investigating the case, had alleged that INX Media had deliberately and in violation of the conditions of the approval made a downstream investment of 26 per cent in the capital of INX News Pvt Ltd without specific approval of FIPB, which included indirect foreign investment by same foreign investors, and had generated Rs 305 crore foreign direct investment in INX Media Pvt Ltd against the approved foreign inflow of Rs 4.62 crore.

To wriggle out of the situation without any punitive action, INX Media entered into a criminal conspiracy with Karti, the agency had claimed.The FIPB unit of the finance ministry not only granted the illegal approval but also misinformed the investigation wing of Income Tax Department, the ED had alleged.

 P Chidambaram and his son Karti. File Photo.

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