BAIL GRANTED TO FORMER UNION MINISTER P. CHINDAMBRAM - Synopsis
RISHABH SACHDEVA 4 Jan 2020

P. CHINDANBARAN VS DIRECTORATE OF ENFORCMENT [INX MEDIA CASE ]

The case of INX Media relates to an ongoing investigation into high-profile money laundering in India. It includes allegations of foreign exchange clearance irregularities for obtaining overseas investment in 2007 provided to INX Media group. P. At the time, Chidambaram was Minister of Union Finance. His Son, Karti Chidambaram, was involved in the investigations.

M / s INX Media Private Limited  sought permission from the Foreign Investment Promotion Board (FIPB) to issue some equity and convertible, non-cumulative, redeemable preferential shares by way of preferential allocation in order to engage in the establishment, operation, management and broadcast of television channel bouquet. The company also received approval to make a downstream financial investment to the extent of 26% of M / s INX News Private Limited's issued and outstanding equity capital. The FIPB Board recommended that INX Media's plan be considered and accepted by the Minister of Finance. In addition, the quantity of FDI / NRI inflows towards M / s INX media was shown as Rs. 4.62 crores in the press release issued by the FIPB Unit on 30.5.2007 indicating details of proposals accepted at the FIPB meeting. Unlike FIPB's approval, M / s INX Media Pvt. Ltd. intentionally and in violation of approval conditions, made a downstream investment to the extent of 26 percent capital of INX News and also produced more than Rs. 3.05 crores FDI in INX Media (P) Ltd. against the authorised foreign inflow of Rs. 4.62 crores is the accusation. A complaint is reported to have been received by the Income Tax department investigation wing seeking clarification from the Ministry of Finance's FIPB unit. M / s INX Media Limited received clarification from the FIPB Unit via letter of 26.5.2008. It was further claimed in the FIR that M / s INX Media had received this letter in order to avoid criminal punitive action with Mr Karti Chindambran. Mr. Karti Chidambaram is alleged to have exerted his power over FIPB unit officials, which resulted in M / s INX News(P) Ltd being shown undue favour. Instead M / s INX News (P) Ltd. again approached the FIPB Unit by intentionally concealing the investment earned in INX Media (P) Ltd. and requested approval for the downstream investment. It was also mentioned in the FIR that Mr. Karti Chidambaram was considered in the form of payments instead of services rendered to M / s INX Group

On the basis of this , The Directorate of Enforecement registered a case against the accused  under Section 3 of  Prevention of  Money Laundering Act, 2002  , punishable under section 4 of the said act. The complainant was arrested in the CBI case on 21 August 2019. He was arrested on 16.10.2019 in the ECIR case on the grounds that approx payment. Due to the FIPB work done for INX Group, Rs. 3 crores was made in the appellant's instance to the companies controlled by his son.

Bail granted to P. Chindambaran under section 120-B r/w 420 Indian Penal Code in respect to INX Media Case.


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