Former finance minister P Chidambaram on Wednesday appeared before the Central Bureau of Investigation (CBI) for questioning in connection with alleged irregularities in the clearance of foreign investment in INX Media. The Delhi High Court has granted Chidambaram interim protection from arrest until July 3 in the case. Here is everything you need to know about the INX media case.
In March 2017, INX Media approached FIPB to seek permission for issue of equity shares to three non-resident investors. This money was sought for the creation of several news channels. According to the FIR filed by CBI, INX Media also proposed to “make a downstream financial investment to the extent of 26% of the issued and outstanding equity share capital of INX News Private Limited”. However, the FIPB only allowed INX Media to avail of FDI of Rs 46.2 million. But the company generated financial investment worth Rs 3.05 billion, violating the rule.
Chidambaram caught the eye of investigating agencies in connection with the Rs 3.05-billion FDI clearance by FIPB. He appeared before the CBI for questioning on June 6. The Delhi high Court had a day earlier granted Chidambaram interim protection from arrest in the case until July 3.
The CBI and ED claim that INX Media approached Chidambaram's son, Karti, to avoid any legal action. CBI said Karti received kickbacks of around Rs1 million in connection with the case. Karti was arrested by the CBI on February 28 and released on bail by the Delhi High Court on March 23.
The Chidambrams have denied all charges against them, calling it all political vendetta. They have also been accused of irregularities in the grant of FIPB clearance to the Aircel-Maxis deal in 2006