A six point explainer of the INX Media case
New Delhi, Aug 21: The INX Media case has caught up to P Chidambaram and the Delhi High Court on Tuesday, rejected his anticipatory bail plea.
The CBI and the Enforcement Directorate have issued look out notices against Chidambaram after the agencies failed to find him at his residence. The case on hand dates back to 2007 and it is alleged that INX Media entered into a criminal conspiracy with Karti Chidambaram to settle a case of violation of foreign investment norms.
Here is a six-point explainer of what the INX Media case is:
- INX entered into a criminal conspiracy with Karti Chidambaram to amicably settle a case of violation of foreign investment norms by the company in 2007.
- The media firm had brought in Rs 305 crore through foreign investment even as the FIPB had approved foreign inflow of only Rs 4.62 crore.
- Karti was engaged by the firm "by virtue of his relationship with the then Finance Minister P. Chidambaram, the CBI alleged.
- Karti Chidambaram exercised influence over certain FIPB officials and the department instead of investigating the case, extended undue favours to the media firm by asking it to apply for fresh FIPB approval on the downstream investment of Rs 305 crore in violation of norms. INX Media was granted FIPB permission for the investment which had already come into the firm.
- Karti Chidambaram received Rs 10 lakh from INX Media for "management consultancy charges" through Advantage Strategic Consulting (P) Ltd, a firm which was indirectly controlled by Chidambaram. CBI says that this was done to conceal the identity of Chidambaram.
- CBI alleges that invoices of at least Rs 3.5 crore were raised in favour of INX Group in the name of companies where Chidambaram has direct and indirect interests.