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What is the case

NEW DELHI: Legal troubles appear to be mounting for senior Congress leader P Chidambaram in connection with the INX Media corruption and money laundering cases registered by CBI and Enforcement Directorate (ED). On Wednesday, the Supreme Court refused to grant an urgent hearing on the leader's plea seeking protection from his arrest.Chidrambaram had sought relief from the apex court after the Delhi high court rejected his interim bail plea and called him a 'key conspirator' in the case. The HC said the scam appears to be a "classic case of money laundering" and the gravity of the offence amply justifies the denial of pre-arrest bail to the former Union minister.On May 15, 2017, the CBI registered an FIR alleging irregularities in the Foreign Investment Promotion Board (FIPB) clearance given to INX Media for receiving funds from abroad to the tune of Rs 305 crore in 2007. This was when Chidambaram, father of Karti Chidambaram, was finance minister. ED also filed a money laundering case in the matter in 2018. INX Media was then owned by Indrani and Peter Mukerjea, currently in jail in connection with the Sheena Bora murder case.In February 2018, Karti Chidambaram was arrested for allegedly accepting money for clearance to go through. He was later granted bail. His father meanwhile moved the Delhi HC seeking anticipatory bail in the CBI and ED cases. On Jan 25, 2019, the court had reserved its judgement on the pleas. On August 20, the high court dismissed the petitions, paving the way for investigating agencies to arrest him. Since then, the CBI and ED teams have visited the Congress leader's house thrice but Chidamabaram remains 'missing'.According to CBI and ED, Karti Chidambaram, promoter-director of the firm Chess Management Service, used his influence with officials of the finance ministry and the FIPB to orchestrate a cover-up of illegal foreign transactions made by INX Media.In March 2007, INX Media was granted permission by the FIPB for FDI inflow amounting to Rs 4.62 crore from three Mauritian companies into INX Media. However, the proposal for downstream investment was at the time rejected.Downstream investment is indirect foreign investment by one Indian company to another by way of subscription or acquisition of shares.But, according to the CBI, instead of the approved Rs 4.62 crore FDI, INX Media brought in a much larger sum of Rs 305 crore. It then went a step further and even brought in downstream investment, clearly flouting the rules.Acting on a complaint, the Income Tax department sought clarifications from FIPB, prompting the latter to seek an explanation from INX Media, which then hired Karti Chidambaram to resolve the matter.According to the CBI, the company entered into a 'criminal conspiracy' with Karti to get "issues resolved amicably by influencing public servants of FIPB", thanks to his "relationship with the then finance minister." CBI said INX Media was advised to apply for fresh FIPB approval for the downstream investment that had already been made by the company.According to the investigating agencies, money was transferred to companies with links to Karti, including Advantage Strategic Consulting, which received a Rs 10 lakh payment from INX Media, along with other funds from dubious sources.Further, Indrani Mukerjea , who turned approver in the case in July 2019, said Karti had then demanded $1 million for his services. Indrani told the ED that she and her husband Peter met Chidambaram in 2008 when he was a minister. The Congress leader allegedly told Peter to help his son Karti in his business and make possible overseas remittances in lieu of FIPB approval. Indrani also met Karti who asked for $1 million to be transferred into an overseas account to sort the matter. Chess Management and Advantage Strategic were the two firms suggested as alternatives to make payments when Peter Mukerjea said overseas transfer would not be possible, Indrani claimed.According to the ED, Karti purchased a tennis club in Spain, cottages in UK, and several other properties in India and abroad worth over Rs 54 crore. All these properties were allegedly bought through bribes received by Karti in the INX Media case.