Chidambaram before appearing before the ED for the questioning on Wednesday. (Image: PTI)
Former Finance Minister and senior Congress leader P Chidambaram was grilled by the Enforcement Directorate (ED) on Wednesday in connection with the INX Media money laundering case.
Chidambaram was summoned by the agency to join the investigation.
The senior Congress leader met the investigators at 11 am and was questioned by the agency throughout the day with a one-hour lunch break for which he went to his residence.
Sources told India Today TV that last week, Karti Chidambaram was also questioned by the agency. The father-son duo was earlier granted interim protection from arrest by the court.
Chidambaram maintains that the entire case against him is political vendetta by the ruling government.
In February, Karti Chidambaram was arrested by CBI at the Chennai airport in connection with the same case.
An FIR filed by the CBI on May 15, 2017 alleged irregularities in the Foreign Investment Promotion Board (FIPB) clearance to INX Media for receiving overseas funds to the tune of Rs 305 crore in 2007 when P Chidambaram was the Finance Minister in the UPA government.
INX Media was once owned by Peter and Indrani Mukherjea, prime suspects in the money laundering case. Karti is connected to the INX Media bribery case regarding various clearances given to the company.
According to the investigative agencies, INX Media showed a transaction of Rs 10 lakh named against Advantage Strategic Consulting Pvt Ltd, a firm which is allegedly indirectly owned by Karti, as management consultancy charges towards an FIPB notification and clarification.
It has been alleged that Karti Chidambaram took money from INX Media and used his influence and power to manipulate a tax probe against the company regarding a case of violation of FIPB conditions to get investments from Mauritius.
However, in the bail order, it was said, "None of the FIPB officials ever met Karti Chidambaram or were approached by Karti to give favour in INX Media case."
In connection with the case, CBI has filed an FIR against Karti Chidambaram and Mukherjeas for criminal conspiracy, influencing public servants, criminal misconduct, cheating and receiving illegal gratification.
Investigators claim that they were able to recover vouchers worth Rs 10 lakh paid for the service.
In 2010, the ED had registered a case under Foreign Exchange Management Act (FEMA) for diverting foreign direct investment by three Mauritius-based companies in INX Media to its step down subsidiaries without prior approval of the Foreign Investment Promotion Board (FIPB).
New Vernon Private Equity Limited, New Silk Route (NSR) PE Mauritius, and Dunearn Investment (Mauritius) were the three companies involved in INX Media.
After an investigation wing of the Central Board of Direct Taxes (CBDT) came up with the tax history of the INX group, it suggested that Mukerjeas were involved in laundering Rs 305 crore through Mauritius into eight different INX subsidiary companies (between 2007-2008).
The CBI and ED both filed cases against Karti seeking probe and alleging irregularities in the FIPB clearances.
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