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INX Media case

From EverybodyWiki Bios & Wiki

The INX Media case refers to an ongoing high-profile money laundering investigation in India alleging irregularities in the Foreign Investment Promotion Board (FIPB) clearances given to INX group for receiving overseas funds in 2007 at a time when P. Chidambaram was union finance minister.[1][2][3]

As of August 2019, there were no reports of charges filed against P. Chidambaram. The CBI is reported to be conducting a probe.[1]

Background[edit]

INX Media, founded by media entrepreneurs Indrani Mukherjea along with husband Peter Mukherjea, was allegedly helped by P Chidambaram, then Union Finance Minister of India, in violating foreign investment laws. INX Media had permission to source foreign investments to the tune of Rs 4.62 crore but it has allegedly received funds worth Rs 305 crore.[4][better source needed]

In March 2007, when P. Chidambaram was Union Finance Minister of India, INX Media had approached the Chairman of Foreign Investment Promotion Board (FIPB), for permission for foreign direct investment (FDI) from three non-resident investors based in Mauritius.[3][5][note 1] This money was sought for creating and operating a number of television channels under the banner of INX Media.[3] The application to the FIPB mentioned its intention to "make a downstream financial investment to the extent of 26 per cent of the issued and outstanding equity share capital of INX News Private Limited".[3][5]

The FIPB approved the proposal for FDI inflow of Rs. 4.62 crore, but did not approve the downstream investment.[3][5] However, according to the CBI, the company "deliberately and in violations of the conditions and approval", carried out the downstrem investment. Moreover, it generated FDI exceeding Rs. 305 crore "by issuing shares to foreign investors at a premium of more than Rs 800 per share".[3]

When the Income Tax Department sought clarifications on the matter in February 2008, INX Media allegedly sought to evade the investigation by approaching Karti Chidambaram to leverage his family name.[3] The CBI said that Karti Chidambaram recived kickbacks to the tune of Rs. 10 lakh for his assistance, via his consulting firm Advantage Strategic Consulting Ltd. The CBI has expectations of finding evidence for far larger kickbacks.[3]

The fact that it received Rs 305 crore (instead of the approved Rs 4.62 crore) was in violation of FIPB rules and regulations. The downstream investment in the subsidiary was also in violation of FIPB rules.[6][not in citation given]

In 2009, Peter and Indrani Mukerjea exited INX Media by selling their 30% share in the company, which was making losses by this time. The company was subsequntly renamed 9X Media.[7]

Investigations[edit]

2010–2015[edit]

In 2010, the Enforcement Directorate, a financial crime fighting agency, registered a case under Foreign Exchange Management Act (FEMA) for diverting foreign direct investment by three Mauritius-based companies in INX Media to its subsidiaries without prior approval of the FIPB.[8] The three companies named were New Vernon Private Equity Limited, New Silk Route (NSR) PE Mauritius, and Dunearn Investment (Mauritius). In 2013 the investigation was halted without explanation.[7] In May 2014 the investigative wing of the Central Board of Direct Taxes compiled a tax history of the INX Group and suggested that the Mukerjeas had laundered Rs. 275.5 crore (Rs. 2.755 billion) via Mauritius into eight INX Group subsidiary companies between 2007 and 2008.[9][10] In September 2015 the Mumbai office of the Enforcement Directorate indicated that it would reopen the 2010 FEMA case under the Prevention of Money Laundering Act, 2002.[11]

2017[edit]

On 15 May 2017, the Enforcement Directorate filed a case against Karti Chidambaram (Congress MP), INX Media and its former directors, Peter Mukerjea and Indrani Mukerjea, and a few others for money laundering.[2][12]

In June 2017, The Foreigner Regional Registration Officer and the Bureau of Immigration, which comes under the Union Home Ministry, issued a look out circular (LOC) against Karti Chidambaram.[12] On 10 August 2017, Madras High Court stayed the LOCs issued against Karti Chidambaram and four others but it was stayed by Supreme Court of India on 14th August 2017.[12] In October 2017, P Chidambaram conveyed to the Supreme Court of India that the case is a "politically-motivated vendetta" against him and his son.[13]

2018[edit]

Karti Chidambaram's chartered accountat, S. Bhaskararaman, was arrested for allegedly assisting him to manage his wealth in India and abroad in February 2018.[12] In the same month, Karti Chidambaram was arrested by CBI at Chennai airport and was brought to Delhi.[12] He received bail after spending 23 days in jail.[12]

In March 2018, Indrani Mukerjea told the CBI in a statement that a $1-million deal had been struck between Karti Chidambaram and the Mukerjeas to secure FIPB approval in favour of INX Media.[6] In October 2018, the Enforcement Directorate (ED) seized assets of Karti Chidambaram worth Rs 54 crore, including properties in New Delhi, Ooty, United Kingdom and Barcelona in relation to the INX Media case.[14]

Arrest of P. Chidambaram[edit]

P. Chidambaram, former Union Minister of Finance went missing after the CBI and ED issued a notice to appear before them.[15][16] He appeared around 24 hours later at the Congress Party headquarters and made a statement to the press that he has "not committed any offence in INX Media case" and "will respect the law".[17][18][19][20] His plea for an anticipatory bail in INX Media case was dismissed by the Delhi High Court on 20 August 2019.[21] The CBI arrested him at his house the next day, in a sequence of events described as "dramatic" by the media. After being denied entry at the main gate of his house, some CBI agents reportedly entered the compound through the back gate and others by "scaling the walls". Eventually they were allowed into the house and the arrest was carried out.[22]

The Times of India commented that the arrest marked "a significant point in the ever-escalating fight between the opposition party [Congress] and BJP".[23]

Notes[edit]

  1. ↑ INX Media application sought to issue 14.98 lakh equity shares and 31.22 lakh convertible non-cumulative redeemable preference shares to the non-resident investors.[4]

References[edit]

  1. ↑ 1.0 1.1 "Explained: What is INX Media case against P Chidambaram?". The Indian Express. 2019-08-21. Retrieved 2019-08-21.
  2. ↑ 2.0 2.1 "INX Media case: How Chidambaram got into trouble - A Timeline". The Economic Times. 2019-08-21. Retrieved 2019-08-21.
  3. ↑ 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 "What is INX Media case; a look at the genesis of P Chidambaram and son Karti's misfortunes". Business Today. 21 August 2019.
  4. ↑ 4.0 4.1 DelhiAugust 22, India Today Web Desk New; August 22, 2019UPDATED:; Ist, 2019 16:54. "Infographic: What is P Chidambaram's role in INX Media case?". India Today. Retrieved 2019-08-23.
  5. ↑ 5.0 5.1 5.2 "INX Media case: a timeline of events", The Hindu, 21 August 2019
  6. ↑ 6.0 6.1 "WHAT IS INX MEDIA CASE". Business Standard India. Retrieved 2019-08-23.
  7. ↑ 7.0 7.1 Shrimi Choudhary (17 Sep 2015). "Sheena Bora murder: ED may reopen probe into Mukerjeas' money dealings". Daily News and Analysis. Retrieved 6 Feb 2016.
  8. ↑ Khushboo Narayan (8 Sep 2015). "ED probes INX Media for 'forex violations'". Indian Express. Retrieved 6 Feb 2016.
  9. ↑ Sharad Vyas (9 Dec 2015). "Indrani, Peter laundered Rs. 275 crore: CBDT report". The Hindu. Retrieved 6 Feb 2016.
  10. ↑ Sai Manish (3 Sep 2015). "Peter Mukerjea used Indrani as a money funnel". Daily News and Analysis. Retrieved 6 Feb 2016.
  11. ↑ Avarnita Mathur (22 Sep 2015). "ED to begin reinvestigation of INX deal under money laundering act". India Today. Retrieved 6 Feb 2016.
  12. ↑ 12.0 12.1 12.2 12.3 12.4 12.5 "INX Media case: How P Chidambaram got into trouble - Delhi High Court rejects Chidambaram's bail petition". The Economic Times. Retrieved 2019-08-23.
  13. ↑ Mishra, Arvind (21 August 2019). "INX Media case: Timeline of scam that has CBI, ED looking for P Chidambaram". India Today. Retrieved 2019-08-22.
  14. ↑ PTI (12 October 2018). "INX Media PMLA case: ED attaches Karti's assets worth Rs 54 crore in India, UK & Spain". The Times of India. Retrieved 2019-08-22.
  15. ↑ Mahapatra, Dhananjay; Garg, Abhinav (21 August 2019). "P Chidambaram goes missing after HC refuses to give anticipatory bail". The Times of India. Retrieved 2019-08-21.
  16. ↑ Achom, Debanish (21 August 2019). ""Under What Law?": P Chidambaram's Lawyer To CBI On 2-Hour Notice". NDTV. Retrieved 2019-08-21.
  17. ↑ Sanyal, Anindita (21 August 2019). "Hope Lamp Of Liberty Will Shine Bright, Says P Chidambaram, Facing Arrest". NDTV. Retrieved 2019-08-21.
  18. ↑ Pandey, Munish Chandra (21 August 2019). "How P Chidambaram managed to hide from CBI, ED who were knocking at his door". India Today. Retrieved 2019-08-21.
  19. ↑ "Chidambaram appears at Congress HQ, says 'have not committed any offence in INX Media case'". The Times of India. 21 August 2019. Retrieved 2019-08-21.
  20. ↑ "Chidambaram appears at AICC, says will respect law". Asian News International. 21 August 2019. Retrieved 2019-08-21.
  21. ↑ "INX media case: Delhi HC dismisses anticipatory bail plea of P Chidambaram". The Economic Times. August 20, 2019.
  22. ↑ Tiwari, Vaibhav (22 August 2019). "The Dramatic Arrest Of P Chidambaram: CBI Climbed Walls Of His Home". NDTV. Retrieved 2019-08-22.
  23. ↑ Chidambaram arrested after day-long drama in SC, Congress HQ, The Times of India, 22 August 2019.


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