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The CBI today arrested Karti Chidambaram, son of former Finance Minister P Chidambaram, in connection with its probe in the INX media case, officials said. Congress leader and top lawyer Abhishek Manu Singhvi will represent Karti at the Patiala House court today. Subramanian Swamy lauds CBI for its achievement, says Karti had continued with his lies so it was inevitable.
Karti was arrested at Chennai airport at around eight in the morning when he returned from the United Kingdom, they said.
Karti Chidambaram has been arrested in Chennai in the INX Media case for non-cooperation with the CBI. He is set to be brought to Delhi later in the evening.
#FLASH Karti Chidambaram taken into custody by CBI at Chennai Airport over INX media case. pic.twitter.com/91WjX5fQ80
— ANI (@ANI) February 28, 2018
Karti Chidambaram has landed in Delhi, according to Times Now. CBI cars are waiting in which he will be taken to Patiala House court.
The focus of CBI's remand application is that once Chess Management was hired, rules were made for his 'services'
Both P Chidambaram as well as Nalini Chidambaram have refused to answer any questions about Karti's arrest, reported CNN-News18 and India Today.
The Congress has reacted to Karti Chidambaram's arrest, saying it was "diversionary tactics", and a result of "political vendetta" by the Centre.
With the arrest coming only a day before the Parliament reconvenes, political observers told NDTV that it could blunt the Opposition's attack on the government's alleged soft stance on corruption.
The CBI had earlier carried out searches at the homes and offices of Karti across four cities for allegedly receiving money from the media firm owned by the Peter and Indrani Mukerjea to scuttle a tax probe.
The CBI had filed the FIR against Karti Chidambaram and the Mukerjeas on charges of criminal conspiracy, cheating, receiving illegal gratification, influencing public servants and criminal misconduct.
File image of Karti Chidambaram. PTI
The agency has alleged that Karti received money from INX Media 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 CBI has said it has also recovered vouchers of Rs 10 lakh which were allegedly paid for the services.
These vouchers were issued in favour of Advantage Strategic Consulting (P) Limited, a firm "indirectly" owned by Karti Chidambaram, the CBI had alleged.
Former finance minister P Chidambaram, after the CBI searches on 16 May, had issued a strong statement in response to the raids, saying the government was using the CBI and other agencies to target his son.
Published Date: Feb 28, 2018 15:17 PM | Updated Date: Feb 28, 2018 15:45 PM
Highlights
Karti Chidambaram to reach Patiala House Court shortly
TMC calls Karti's arrest political witch-hunt by BJP
BJP will take up the issue of Karti Chidambaram's arrest in Parliament
Centre has pushed Congress on backfoot, made strong move to regain anti-corruption mojo
Karti Chidambaram's arrest could be an inflection point in the Bharatiya Janata Party's (BJP) attempt to regain the narrative against corruption. For a party which came into power on the back of a promise to clean the swamp and take action against the kingpins behind the UPA's scam-tainted regime, the Narendra Modi government's four-year stint at the Centre has been quite an anti-climactic experience.
Political sentiments depend on narratives. And narratives more often than not are built on signalling intent rather than actual progress or a patient approach. It is possible that Karti's arrest was forced by circumstances instead of procedure, but it presents the BJP with the chance to kill two birds with one stone: Regain the anti-corruption mojo and prove that graft breaches generational gap in the Congress. Read more here.
CBI gave him a lot of chances but he continued with his lies, says Subramanian Swamy
Congress leader and Senior Advocate Abhishek Manu Singhvi to represent Karti in INX Media case
Visuals of Karti Chidambaram being taken to Patiala House court
Enforcement Directorate looks for Karti’s wealth in Monaco
The Enforcement Directorate (ED) probing into Karti Chidambaram case is seeking details of certain companies based in Monaco, a tax haven country of Western Europe. According to sources the Letter Rogatory (LR) was sent after the agency had unearthed leads during the probe of companies linked to Karti and his associates. India has tax information exchange agreement with Monaco for sharing banking and ownership information about the companies.
Nobody is above the law, says BJP's Sambit Patra
Chidambaram's attempt at politicising son's arrest won't work
In 2015, former finance minister P Chidambaram had said in an interview, "If the government wishes to target me, they should do so directly, not harass friends of my son who carry on their own businesses and have nothing to do with politics." But Chidambaram’s apparent attempt to politicise the issue may not work, since the Congress itself will not want to get involved in the case, given its seriousness and its larger political implications. There is immense pressure on the Narendra Modi government not to lower its guard against corruption.
What is the Aircel-Maxis case?
The bigger trouble in waiting for the Chidambarams may be the Aircel-Maxis case. In a nutshell, the whole story of the Aircel-Maxis case pertains to the forced selling of Aircel in 2006 by its owner entrepreneur C Sivasankaran, allegedly under pressure from former Union telecom minister Dayanidhi Maran. To return the favour, Maxis invested around Rs 47 crore in the Sun Group, owned by Dayanidhi Maran’s brother, Kalanidhi Maran. Karti allegedly facilitated the whole transaction through his firm Advantage Consulting and passed along the bribes.
Karti's empire spread across many countries
Karti’s empire is spread across several countries, which would also mean several jurisdictions. The Singapore subsidiary of Advantage, Advantage Singapore, has real estate investments in at least 15 countries. But under the Prevention of Money Laundering Act (PMLA), the Enforcement Directorate can expand its probe to any geographies and seek help of international agencies if needed.
What is the value of Karti's company Advantage’s Wealth?
Advantage India holds 90,000 shares out of the 1.5 lakh equity shares of Vasan Eye Care. The firm procured the shares at a throwaway price of Rs 100 per share. However, the report states that it actually paid only one-third, or Rs 33 per share. It sold 60,000 shares in two tranches of Rs 30,000 to Sequoia Capital Investments, a Mauritius-based investment fund. In the first tranche, 30,000 shares were sold at Rs 7,500 per share or Rs 22.5 crore. Assuming that the second tranche was also sold at the same price and if the balance shares are valued at the same price, then Vasan Eye Care's share would amount to Rs 112.5 crore that Advantage acquired at a mere Rs 50 lakh, according to the report. Now, that’s quite a killing, isn’t it?
Not the first time agencies have moved against Chidambaram family
This isn't the first instance in which investigative agencies have moved against the Chidambarams. In April last year, the Enforcement Directorate (ED) had issued a show-cause notice to Karti and a firm purportedly linked to him for alleged violations of the FEMA laws to the tune of Rs 45 crore. Also, the agency also issued a similar notice, after over two years of investigations, to another firm Vasan Health Care Private Limited, which is based in Chennai, for alleged forex violations of Rs 2,262 crore.
BJP denies accusations of political vendetta
The BJP has said laws are taking their own course and the party isn't involved in the functioning of the investigating agencies or of the judiciary, following accusations of "political vendetta" hurled by the Congress over the arrest of P Chidambaram's son Karti.
Karti's arrest may complicate things for his father, P Chidambaram
In May last year, the CBI had conducted raids at the Chennai houses of Chidambaram and his son. The raids and the arrest now relates to clearances given to INX Media. Karti allegedly facilitated the clearances for kickbacks in 2008 when Chidambaram was a Union minister in the UPA government. It is here that things become difficult for the top Congress leader. His involvement, direct or indirect, in the case can come under investigations post the arrest of his son.
CBI team, along with Karti Chidambaram, leaves for Delhi from Chennai
The list of accused people in the case
Questioning currently ongoing in the Chennai airport lounge
Karti Chidambaram is currently being questioned in a lounge inside the airport, according to CNN-News18. Sources said that CBI plans to take him to Delhi on an 11 am flight and will try to present him in Delhi before 4 pm.
Senior Congress leader Ashok Gehlot reacts to the arrest
Randeep Surjewala of the Congress reacts to the Karti Chidambaram's arrest
RECAP: P Chidambaram had moved Supreme Court seeking protection of fundamental rights amid ED and CBI raids
Senior Congress leader P Chidambaram had approached the Supreme Court seeking protection of his fundamental rights, including the right to privacy, amid summons to his son Karti Chidambaram and raids by the CBI and the ED in connection with cases related to Aircel-Maxis and INX Media.
Chidambaram, who is also a senior advocate, had claimed in his plea that as part of "political vendetta", the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) have made "vexatious" searches and issued the repeated summons in these cases.
Click here to read more
Karti arrested for non-cooperation in INX money laundering case
Karti Chidambaram has been arrested by the CBI for not cooperating in the investigation of the INX media money laundering case. Karti is accused of receiving Rs 10 lakh from INX Media, in exchange of arranging Foreign Investment Promotion Board (FIPB) clearance. "Karti 'used' his influence to manipulate a tax probe against INX Media in a case of violation of FIPB conditions to receive investment from Mauritius," the CBI had said.
Congress terms arrest political vendetta
The Congress has reacted to Karti Chidambaram's arrest, saying it was "diversionary tactics", and a result of "political vendetta" by the Centre.
Karti Chidambaram arrested
Former Union minister P Chidambaram's son Karti has been arrested by the CBI in Chennai, just hours after arriving from London.
15:45 (IST)
Karti Chidambaram to reach Patiala House Court shortly
15:29 (IST)
TMC calls Karti's arrest political witch-hunt by BJP
15:28 (IST)
BJP will take up the issue of Karti Chidambaram's arrest in Parliament
15:26 (IST)
Centre has pushed Congress on backfoot, made strong move to regain anti-corruption mojo
Karti Chidambaram's arrest could be an inflection point in the Bharatiya Janata Party's (BJP) attempt to regain the narrative against corruption. For a party which came into power on the back of a promise to clean the swamp and take action against the kingpins behind the UPA's scam-tainted regime, the Narendra Modi government's four-year stint at the Centre has been quite an anti-climactic experience.
Political sentiments depend on narratives. And narratives more often than not are built on signalling intent rather than actual progress or a patient approach. It is possible that Karti's arrest was forced by circumstances instead of procedure, but it presents the BJP with the chance to kill two birds with one stone: Regain the anti-corruption mojo and prove that graft breaches generational gap in the Congress. Read more here.
15:05 (IST)
CBI gave him a lot of chances but he continued with his lies, says Subramanian Swamy
14:39 (IST)
Congress leader and Senior Advocate Abhishek Manu Singhvi to represent Karti in INX Media case
14:25 (IST)
Visuals of Karti Chidambaram being taken to Patiala House court
13:52 (IST)
Karti Chidambaram's profile
13:50 (IST)
Karti Chidambaram leaves Delhi airport
Karti has left the Delhi airport and is now on his way to the Patiala House court, reports CNN-News18. CBI will ask for at least a five-day custody.
13:30 (IST)
Karti Chidambaram to be brought to Patiala Court at 2:15 pm
13:20 (IST)
Karti lands in Delhi
Karti Chidambaram has landed in Delhi, according to Times Now. CBI cars are waiting in which he will be taken to Patiala House court.
13:11 (IST)
Focus of CBI's remand application is that once Chess Management was hired, rules were made for his 'services'
12:58 (IST)
P Chidambaram refuses to take any questions on son Karti Chidambaram's arrest
12:54 (IST)
Full text of FIR against INX Media, Karti Chidambaram
Click here to access the full text of the FIR.
12:52 (IST)
Karti's parents silent on arrest
Both P Chidambaram as well as Nalini Chidambaram have refused to answer any questions about Karti's arrest, reported CNN-News18 and India Today.
12:34 (IST)
How Karti was arrested
After detaining Karti Chidambaram for close to an hour, the CBI team obtained a transit warrant in a city court, Karti, was then flown to Delhi by 10.40 am in a Jet airways flight for further probe.
He was arrested for his alleged involvement in granting Foreign Investment Promotion Board (FIPB) clearance to INX Media case.
According to reports, Karti had gone to London with permission of the court and returned this morning by 7.40 am. He had finished his immigration formalities at the Chennai airport when he was detained by CBI at the international arrival lounge. He was quickly taken to a secluded place for further questioning
12:28 (IST)
Enforcement Directorate looks for Karti’s wealth in Monaco
The Enforcement Directorate (ED) probing into Karti Chidambaram case is seeking details of certain companies based in Monaco, a tax haven country of Western Europe. According to sources the Letter Rogatory (LR) was sent after the agency had unearthed leads during the probe of companies linked to Karti and his associates. India has tax information exchange agreement with Monaco for sharing banking and ownership information about the companies.
12:25 (IST)
CBI alleges that Karti Chidambaram used various means to influence INX Group's FIPB approval
Based on the clarifications issued by Karti Chidambaram's Chess Management Services Private Limited, INX Media Private Limited on 26 June, 2008 tried to justify its actions on (i) the unapproved and unauthorised downstream investment that INX Media falsely claimed was in accordance with the approval, and (ii) the excess inflow received, which was justified as the premium received against the shares issued.
Click here to read more
12:09 (IST)
No takers for Karti's 'Aircel' sim card jokes
Karti Chidambaram had once jokingly said that having an Aircel SIM card is his only involvement in the Aircel-Maxis deal. But, it is unlikely that there will be any takers for his jokes, not just in the Aircel-Maxis case, but likely in other cases too where the father-son duo may have been involved, directly or indirectly.
12:05 (IST)
Nobody is above the law, says BJP's Sambit Patra
12:04 (IST)
Chidambaram's attempt at politicising son's arrest won't work
In 2015, former finance minister P Chidambaram had said in an interview, "If the government wishes to target me, they should do so directly, not harass friends of my son who carry on their own businesses and have nothing to do with politics." But Chidambaram’s apparent attempt to politicise the issue may not work, since the Congress itself will not want to get involved in the case, given its seriousness and its larger political implications. There is immense pressure on the Narendra Modi government not to lower its guard against corruption.
12:03 (IST)
What is the Aircel-Maxis case?
The bigger trouble in waiting for the Chidambarams may be the Aircel-Maxis case. In a nutshell, the whole story of the Aircel-Maxis case pertains to the forced selling of Aircel in 2006 by its owner entrepreneur C Sivasankaran, allegedly under pressure from former Union telecom minister Dayanidhi Maran. To return the favour, Maxis invested around Rs 47 crore in the Sun Group, owned by Dayanidhi Maran’s brother, Kalanidhi Maran. Karti allegedly facilitated the whole transaction through his firm Advantage Consulting and passed along the bribes.
11:59 (IST)
Karti's empire spread across many countries
Karti’s empire is spread across several countries, which would also mean several jurisdictions. The Singapore subsidiary of Advantage, Advantage Singapore, has real estate investments in at least 15 countries. But under the Prevention of Money Laundering Act (PMLA), the Enforcement Directorate can expand its probe to any geographies and seek help of international agencies if needed.
11:59 (IST)
What is the value of Karti's company Advantage’s Wealth?
Advantage India holds 90,000 shares out of the 1.5 lakh equity shares of Vasan Eye Care. The firm procured the shares at a throwaway price of Rs 100 per share. However, the report states that it actually paid only one-third, or Rs 33 per share. It sold 60,000 shares in two tranches of Rs 30,000 to Sequoia Capital Investments, a Mauritius-based investment fund. In the first tranche, 30,000 shares were sold at Rs 7,500 per share or Rs 22.5 crore. Assuming that the second tranche was also sold at the same price and if the balance shares are valued at the same price, then Vasan Eye Care's share would amount to Rs 112.5 crore that Advantage acquired at a mere Rs 50 lakh, according to the report. Now, that’s quite a killing, isn’t it?
11:58 (IST)
Not the first time agencies have moved against Chidambaram family
This isn't the first instance in which investigative agencies have moved against the Chidambarams. In April last year, the Enforcement Directorate (ED) had issued a show-cause notice to Karti and a firm purportedly linked to him for alleged violations of the FEMA laws to the tune of Rs 45 crore. Also, the agency also issued a similar notice, after over two years of investigations, to another firm Vasan Health Care Private Limited, which is based in Chennai, for alleged forex violations of Rs 2,262 crore.
11:58 (IST)
BJP denies accusations of political vendetta
The BJP has said laws are taking their own course and the party isn't involved in the functioning of the investigating agencies or of the judiciary, following accusations of "political vendetta" hurled by the Congress over the arrest of P Chidambaram's son Karti.
11:54 (IST)
Senior lawyer Prashant Bhushan says there is 'no justification' to arrest Karti Chidambaram
11:53 (IST)
Karti's arrest may complicate things for his father, P Chidambaram
In May last year, the CBI had conducted raids at the Chennai houses of Chidambaram and his son. The raids and the arrest now relates to clearances given to INX Media. Karti allegedly facilitated the clearances for kickbacks in 2008 when Chidambaram was a Union minister in the UPA government. It is here that things become difficult for the top Congress leader. His involvement, direct or indirect, in the case can come under investigations post the arrest of his son.
11:11 (IST)
CBI team, along with Karti Chidambaram, leaves for Delhi from Chennai
11:06 (IST)
Karti Chidambaram enroute to Delhi
Karti Chidambaram is enroute to Delhi, reports India Today. He will shortly be produced in a Delhi court.
10:56 (IST)
Visuals of Karti Chidambaram at the Chennai airport
10:53 (IST)
The list of accused people in the case
10:39 (IST)
Congress leader Jaiveer Shergill asks if Karti Chidambaram was not cooperating with investigation then why did the High Court allow him to travel abroad?
10:35 (IST)
We expect more such witch-hunting against the Opposition, says TMC
10:32 (IST)
Who were the foreign investors in INX Media?
1. Dunearn Investment (Mauritius) Pvt Ltd
No of Equity Shares: up to 645447; No of Preference Shares: up to 1344553
Percentage Share Holding on as converted basis: up to 19.900 percent
2. NSR-PE Mauritius LLC
No of Equity Shares:up to 648691; No of Preference Shares: up to 1351309
Percentage Share Holding on as converted basis: up to 20.000 percent
3. New Vernon Pvt Equity Ltd
No of Equity Shares: up to 204857; No of Preference Shares: up to 426743
Percentage Share Holding on as converted basis: up to 6.316 percent
10:28 (IST)
INX Media case's progress
INX Media sought the approval for engaging in the business of creating operating, managing and broadcasting of bouquet of TV channels including Hindi entertainment channel and multiple vernacular entertainment channels. In its application, the company had also mentioned about its intention to make a downstream financial investment to the extent of 26 percent of the issued and outstanding equity share capital of INX News Private Limited. On 16, March 2007, the FIPB unit forwarded the proposal to various departments of government of India for forwarding their comments on the same. The FIPB in its meeting held on 18 May, 2007 recommended the proposal of INX Media to effect for consideration and approval of the Finance Minister. However, in the meeting, the Board did not approve the downstream investment by INX Media in INX New (P) Limited. Accordingly, the recommendations were approved by then Finance Minister P Chidambaram.
Contrary to the FIPB approval conveyed through letter dated 31 May, 2007 and the condition mentioned therein, INX Media deliberately and in violation of the conditions of the approval (i) made a downstream investment to the extent of 26 percent in the capital of INX New Private Limited without specific approval of FPB which included indirect foreign investment by the same foreign investors and (ii) generated over Rs 305 Crores foreign direct investment in INX Media Private Limited against the approved foreign inflow of Rs 4.62 Crore by issuing shares to the foreign investors at a premium of more than Rs 800 per share.
Subsequently the Income Tax department in February 2008 sought clarifications on the two issues from FIPB. The board also sought clarification from INX Media through a letter in May 2008. To wriggle out from the situation, INX Media, CBI alleged entered into a criminal conspiracy with Karti Chidambaram, son of P Chidambaram, then Finance of India and promoter of Chess Management Services Private Limited Chennai so as to get the issues resolved amicably by influencing the public servants of the FIPB unit of Ministry of Finance by virtue of his relationship with the then Finance Minister.
10:24 (IST)
Origins of the INX Media case
INX Media Private Limited was incorporated on 8 August 2006 and has a registered office at Phoenix Mills compound, Lower Parel, Mumbai. Through an application dated 13 March, 2007, it approached the Chairman, Foreign Investment Promotion Board (FIPB) seeking approval for permission to issue by way of a preferential allotment in one or more tranches (i) up to 14,98,995 equity shares of Rs10 each; and (ii) up to 31,22,605 convertible, non cumulative, redeemable preference shares of Rs10 each collectively representing approximately 46.21 percent of the issued equity share capital of INX Media Private Limited on an ‘as converted’ basis to three non resident investors under the foreign direct investment route.
10:15 (IST)
Political fallout expected as Parliament reconvenes
With the arrest coming only a day before the Parliament reconvenes, political observers told NDTV that it could blunt the Opposition's attack on the government's alleged soft stance on corruption.
10:08 (IST)
Questioning currently ongoing in the Chennai airport lounge
Karti Chidambaram is currently being questioned in a lounge inside the airport, according to CNN-News18. Sources said that CBI plans to take him to Delhi on an 11 am flight and will try to present him in Delhi before 4 pm.
10:02 (IST)
Senior Congress leader Ashok Gehlot reacts to the arrest
09:57 (IST)
BJP leader Subramanian Swamy says P Chidambaram will go next
09:52 (IST)
Randeep Surjewala of the Congress reacts to the Karti Chidambaram's arrest
09:36 (IST)
RECAP: ED's January raid had unearthed a confidential CBI report at P Chidambaram's residence
A raid conducted by the Enforcement Directorate (ED) on 13 January at former Union minister P Chidambaram's Jorbagh residence had yielded a confidential CBI report. The report was submitted to the Supreme Court in 2013 in a sealed cover by the CBI on the Aircel Maxis scam.
ANI had reported that the report was an unsigned copy which means it was leaked from the CBI. The ED had reported this to the CBI after which the CBI has started an inquiry as to how the report reached Chidambaram's residence.
Click here to read more
09:31 (IST)
RECAP: ED had conducted raids against people linked to Karti Chidambaram in Chennai
The Enforcement Directorate (ED) had in February carried out searches against people allegedly linked to Karti Chidambaram in connection with the INX Media money laundering case, officials had said. They said the raids were conducted at three premises in Chennai under provisions of the Prevention of Money Laundering Act (PMLA), the anti-money laundering law.
Click here to read more
09:29 (IST)
RECAP: P Chidambaram had moved Supreme Court seeking protection of fundamental rights amid ED and CBI raids
Senior Congress leader P Chidambaram had approached the Supreme Court seeking protection of his fundamental rights, including the right to privacy, amid summons to his son Karti Chidambaram and raids by the CBI and the ED in connection with cases related to Aircel-Maxis and INX Media.
Chidambaram, who is also a senior advocate, had claimed in his plea that as part of "political vendetta", the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) have made "vexatious" searches and issued the repeated summons in these cases.
Click here to read more
09:24 (IST)
Karti arrested for non-cooperation in INX money laundering case
Karti Chidambaram has been arrested by the CBI for not cooperating in the investigation of the INX media money laundering case. Karti is accused of receiving Rs 10 lakh from INX Media, in exchange of arranging Foreign Investment Promotion Board (FIPB) clearance. "Karti 'used' his influence to manipulate a tax probe against INX Media in a case of violation of FIPB conditions to receive investment from Mauritius," the CBI had said.
09:15 (IST)
Congress terms arrest political vendetta
The Congress has reacted to Karti Chidambaram's arrest, saying it was "diversionary tactics", and a result of "political vendetta" by the Centre.
09:12 (IST)
Karti Chidambaram arrested
Former Union minister P Chidambaram's son Karti has been arrested by the CBI in Chennai, just hours after arriving from London.