INX Media & Chidambaram

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It all started in 15th May 2017 when Enforcement Directorate had lodged an Enforcement case information report (ECIR) against Chidambaram Son Karti Chidambaram, INX Media and Its Directors (Peter and Indrani Mukerjee) along with couple of other under the provision of the prevention of Money Laundering Act (PMLA).

INX Media had approached FIPB on March 13, 2007 for permission to issue 14.98 lakh equity shares and 31.22 lakh convertible non-cumulative redeemable preference shares of Rs 10 a piece to three non-resident investors under the FDI route.On May 30, 2007, FIPB cleared FDI of Rs 4.62 crore for INX Media. But it rejected the proposal of downstream investment of INX Media in INX News. INX Media Refuse to obey the conditional approval of FIPB, and brought in over Rs 305 crore of FDI in the firm against the approved inflow of Rs 4.62 crore.

As the directors realised that they wont be getting the funding they approached the then finance minister P. Chidambaram for the favours,the request was approved on the condition that Peter help Chidambaram's son Karti in his business and make possible overseas remittances in lieu of the FIPB approval. INX Media deliberately and in violations of the conditions and approval went ahead with the downstream investment (A downstream investment is nothing but investment by a company in another company by way of subscription or acquisition of shares or acquisition of control)and generated FDI exceeding Rs 305 crore in the company "by issuing shares to foreign investors at a premium of more than Rs 800 per share" between August 2007 and May 2008.

As soon as the money laundering case was filed ED started off with attachment of properties of karti chidambaram in UK and Spain in the name of Advantage strategic consultancy pvt limited indirectly owned by Karti,which received a Rs 10 lakh payment from INX Media, along withother funds from dubious sources. According to ED Karti Purchased a tennis club in Spain,Cottages in UK,and several other properties abroad and also in India worth over 55 crores,all of them were purchased through bribes received by him through INX media.

Earlier today Chidambaram was granted no immediate relief by the Supreme Court after he asked for an urgent hearing on his petition against the rejection of anticipatory bail.


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