India’s law enforcement and economic intelligence agency, Enforcement Directorate (ED) has said on Thursday (11) that it has attached the properties worth Rs 540 million (£5.52m) of Karti Chidambaram in India, UK, and Spain in connection with the INX Media money laundering case.
Karti is the son of former Indian finance minister, P Chidambaram. The ED has attached the assets in three counties in connection with the INX Media money laundering case in which Karti is allegedly involved.
The investigation agency has issued a provisional order under the Prevention of Money Laundering Act (PMLA) for the attachment of the farmland and bungalow in Southern Indian state Tamil Nadu and Rs 160m worth flat in South Delhi’s Jorbagh which is registered in the name of Karti and his mother Nalini. The ED added that Karti has a 50 per cent share in this asset.
In the UK, the ED has attached Rs 86.7m worth cottage and house in Somerset. A tennis club valued at more than Rs 145.7m located at Barcelona in Spain has also been attached as part of the ongoing investigations.
Fixed bank deposits worth nine million rupees, in India’s Southern Indian city, Chennai in the name of Advantage Strategic Consulting Private Limited (ASCPL) have also been attached, the ED added.
The properties are in the name of Karti and ASCPL, the company allegedly linked to him. The attached properties altogether amount to Rs 540m, the ED said in a statement.
According to the investigation conducted until today provides a clear picture that for Foreign Investment Promotion Board (FIPB) approval Peter and Indrani Mukerjea met then Indian finance minister, P Chidambaram so that there was no delay in their application.
In the meeting, Karti’s father allegedly asked for Karti’s business interests to be kept in mind. The investigators have identified payments of Rs 30.9m by Peter Mukerjea to ASCPL and associated entities owned by Karti through manipulated debit notes.
"During the investigation, it was admitted that debit notes were raised on the directions of Karti Chidambaram to show some transactions which in fact did not occur," the agency said.
The investigation agency added that the money so obtained by associated entities had been channeled back into ASCPL.
"The funds received by ASCPL were invested and ASCPL also purchased shares of Vasan Health Care. A part of these shares was sold at a profit of nearly Rs 410m.
ASCPL also earned Rs 184.8m from the sale of shares in another company for an amount of Rs 294.9m. These funds arising from the sale of a laundered property is also property involved in money laundering," the investigation agency added.
The ED further said that it will get issued judicial requests from a competent court for the legal formalisation of the attachment of the foreign properties after they were provisionally attached Thursday under section 5 of PMLA.
Earlier, the ED has filed a PMLA case in this agreement supported by a first information report (FIR) filed by federal investigation agency, Central Bureau of Investigation (CBI). The case registered had alleged that the irregularities occurred in the FIPB clearance case to INX Media for obtaining foreign funds to the tune of Rs 3050m in 2007 when Karti’s father was serving as India’s finance minister.
The ED had questioned Karti in this case earlier. The ED had filed an Enforcement Case Information Report (ECIR), which is equivalent of a police FIR, against the accused named in a CBI charge, including Karti, INX Media and its directors Peter and Indrani Mukherjee.
“A bizarre and outlandish “Provisional Attachment Order” which is not based on law or facts but on crazy conjectures. This is meant only to grab ”headlines”. The ”order” will not withstand judicial scrutiny, review or appeal. Will approach the appropriate legal forum,” tweeted Karti Chidambaram reacting to the media reports on the ED’s latest move against him.
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