Did Karti help Bengaluru firm get FDI?

Investigators are scanning through a series of payments received by a company "indirectly" linked to former Finance Minister P Chidambaram's son Karti, for services, including arranging government clearance for FDI in a Bengaluru firm.

The CBI and Enforcement Directorate (ED) have recovered a number of invoices from INX Media, whose previous promoters are Peter Mukherjea and Indrani Mukherjea, and Advance Strategic Consultancy Pvt Ltd (ASCPL), a company the CBI claims is "indirectly" linked to Karti.

While Chidambaram and his son have denied any wrongdoing, Karti is in custody in connection with the approval for FDI in INX Media.

Sources said investigators are now looking into the clearance given by Foreign Investment Promotion Board (FIPB) for FDI by Mauritius-based M/s Katra Holdings Pvt Ltd in its Bengaluru-based subsidiary M/s Mason and Summer Alcobev Pvt Ltd, which manufactures and markets alcohol.

If one goes by an ED report, ASCPL raised an invoice (No: ASCPL/0506/003) dated August 20, 2005 for Rs 10 lakh plus service taxes on Katra Holdings. The ASCPL received a payment of Rs 9,39,050 (after Tax Deducted at Source or TDS).

According to the report, M/s Katra Holdings received approval of FIPB for FDI in its subsidiary M/s Mason and Summers Alcobev. "The invoice on Katra Holdings Ltd was raised on this same address in Bengaluru (that of Mason and Summers Alcobev). FIPB meeting in this case took place on 26 August, 2005 and invoice was raised on 20 August, 2005. Payment was made by Katra Holdings on 1 September, 2005," it claimed.

Chidambaram had cleared the 36 cases, including Katra Holdings, recommended by the FIPB Board, according to a statement issued by Ministry of Finance on September 29, 2005. Katra Holdings was permitted to invest Rs 4.66 crore in Mason and Summers Alcobev "to set up a new JV (joint venture) to undertake wholesale trading on cash and carry basis".

Officials of Katra Holdings and Mason and Summers Alcobev could not be contacted for their comments.

More payments

Another mention in the report is about the invoice dated March 29, 2006 raised on Aircel Televentures Ltd, which obtained FIPB clearance for sale of its shares in Aircel Ltd to Maxis on March 20, 2006.

"Aircel Televentures Ltd, which had no business other than holding shares of Aircel Ltd paid Rs 26,00,444 (after TDS) to ASCPL vide cheque no 9984075 dated April 11, 2006," the report said.

The report also claimed that the ASCPL received Rs 8 lakh plus taxes from EI Forge Ltd and the payment was admitted to have been made for sanction of a loan by SBI Global Factors Ltd. "The payment was 2% of the amount of the loan ie Rs 4 crore. The matter is being investigated further," it said.