Chennai: CBI raided the residences of Former Union Finance Minister P Chidambaram and his son Karti Chidambaram in Chennai this Tuesday for misconduct in granting illegal FIPB approval.
Around 17 residence and office locations in Chennai, Delhi, Noida have been raided by the CBI.
Reacting to the raids by the CBI, Congress leader said the Government is targeting his family in order to silence him.
“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”, said Chidambaram.
He says he has not made any illegal approval in FIBP as the Government is claiming to.
“Every case was processed according to law and approval was granted or refused in accordance with the recommendations of the FIBP consisting of five Secretaries to the government of India,” Chidambaram said.
Karti Chidambaram’s and a firm received show cause notice for allegedly violating Foreign Exchange Management Act. He is being investigated for Axis-Maxis deal and also for the investments received from by the INX News.
Enforcement Directorate in its earlier report submitted to The Supreme Court accused Chidambaram for the deal between the Telecom companies Aircel and Maxis. It said the then former Union Minister misused his power in the FIPB clearance.
The deal of selling Aircel to Maxis Telecom Company was said to be illegal violating the protocol for Foreign Direct Investments. Chidamabaram is accused of the FIPB clearance in this since he was not authorized to do so for the amount involved was more than 600 crores.
Another FIPB clearance was made for INX news, whose original promoter Peter Mukherjee is a suspect in Sheena Bora Murder case, who paid their consultation fee to the Strategic Consulting firm which is believed to be Karti Chidambaram’s firm.
Enforcement Directorate(ED) said, “A show cause notice has been issued to M/s Advantage Strategic Consulting Private Limited, its directors and also to Karti P Chidambaram who appears to be the controller and ultimate beneficiary in these transactions”.
“FIPB approval is granted in hundreds of cases. The five secretaries who constitute the FIPB (foreign investment promotion board), the officials of the FIPB secretariat and the competent authority in each case are the public officials. There is no allegation against any of them. There is no allegation against me”, said the former minister an e-mail statement.
According to ED documents, the Will deed recovered from the Chennai office of the Advantage Strategic firm last year showed 60% of the company will be owned by Karti Chidambaram’s family.
Ausbridge Holdings will own the remaining shares which again was once owned by Karti, but later was transferred to Mohanan Rajesh believed to be Karti’s close associate.
These recovered Will deeds were by joint Income Tax – Enforcement Directorate investigation against Former Union Minister’s son Karti. The investigation also disclosed other businesses of Karti Chidambaram.
ED reports say “The contents in the will establish that Karti Chidambaram’s family is the real owner of these shares and the assets held by the company”, as reported in Dailyhunt.