india

Updated: Aug 23, 2019 00:16 IST

HT Correspondent

New Delhi: Central Bureau of Investigation (CBI) officers who questioned former finance and home minister and senior Congress leader P Chidambaram focused on three aspects, senior agency officials said on condition of anonymity: his meeting with Indrani Mukerjea and Peter Mukerjea at his North Block office sometime in April or May 2007 following which INX Media got FIPB (foreign investment promotion board) approval for investment from Mauritius through the FDI (foreign direct investment) route; the alleged ₹3 crore payment routed through his son Karti Chidambaram’s companies in return for the favour; and a suspected attempt to influence the Income Tax investigation against the Mukerjeas.

According to one of the senior officers, the Mukerjeas through their company INX Media, approached the FIPB chairman in March 2007 seeking permission for issuing equity shares to three non-resident investors based in Mauritius through the FDI route as they wanted to set up a number of channels.

The company also sought to make a downstream financial investment to the extent of 26% of the issued and outstanding equity share capital of INX.

The former minister was arrested in connection with the case on Wednesday and produced in a CBI court on Thursday.

At least some of the CBI’s case is based on a statement from Indrani Mukerjea, currently in jail for plotting the murder of her daughter Sheena Bora.

To get their work done, according to Indrani Mukerjea’s statement recorded under section 164 of Code of Criminal Proceedure (CrPC) before a magistrate, they met P Chidambaram in his office in April or May 2007.

At this meeting, Chidambaram allegedly asked the couple to help his son’s business.

The CBI sleuths asked Chidambaram on Thursday about the meeting, but the former minister refused to recall the meeting and was evasive, the officer cited above said.

FIPB (which came under the finance minister) approved INX’s proposal for FDI inflow of R4.62 crore but didn’t approve the proposed downstream investment. However, the company went ahead with the downstream investment and generated FDI exceeding ₹305 crore by issuing shares to foreign investors at a premium of more than R800 per share.

The irregularities were noticed by the Income Tax department and FIPB. To get themselves out of trouble, the Mukerjeas claim they met Karti Chidambaram at a five-star hotel during which he asked for $1 million to make the problem go away.

As per the plan worked out between the INX Media promoters and Karti Chidambaram, the Mukerjeas engaged the latter’s company Advantage Strategic Consulting Pvt Ltd (ASCPL). As part of the alleged quid pro quo, ASCPL and its associated companies raised four invoices for $700,000 (₹3.10 crore) that were reimbursed by on INX Media. Soon, FIPB gave its approval to fix the irregularities.

The interrogators asked P Chidambaram as to why FIPB did not raise a red flag on the downstream investment and why the IT department was not allowed to conduct an investigation, the official added.

CBI also asked him about the payment amount discussed by Karti Chidambaram with the Mukerjeas, this person said. Another CBI officer added on condition of anonymity that the agency will also try to find out about the directions given by P Chidambaram to the FIPB chairman after he decided to favour INX.

The former minister is likely to be confronted with FIPB officials and Indrani Mukerjea soon, the first officer said.

An Enforcement Directorate officer, who asked not to be named, added that the Income Tax department also received information that the Mukerjeas may have undisclosed properties abroad but the probe was never pursued. The ED falls under the purview of the finance ministry.

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