THE INX MEDIA CASE
In May 2017, the Electorate Directorate (ED), a law enforcement agency responsible for enforcing economic laws and fighting economic crime in India registered an Enforcement Case Information Report (ECIR)- equivalent to the First Information Report (FIR)- against Karti Chidambaram (son of P. Chidambaram), INX Media and its directors, Peter and IndraniMukherjea, along with a couple of co- offenders under the provisions of the Prevention of Money Laundering Act (PMLA).
P. Chidambaram was taken to the Central Agency’s headquarters on 22nd August, 2019 and was questioned regarding the INX media case in which he was alleged to be the key conspirator. The INX Media, now called the 9X media was a venture developed by the former media moguls- Peter and IndraniMukherjea with the help of some influential giants- the Chidambarams. The INX media case has basically come back to haunt a Congress stalwart- P Chidambaram, who also happens to be the former Finance Minister of our country.The ED and CBI carried out several raids on offices and residences owned by the Chidambarams and even questioned Karti several times. In February 2018, Karti was arrested by CBI but was later granted bail by the Delhi High Court. Moreover, he got elected to Lok Sabha from Sivaganga in Tamil Nadu.
As per the CBI, the Foreign Investment Promotion Board (FIPB) approved a Foreign Direct Investment (FDI) of Rs 4.62 crore, but did not allow downstream investment, but even though the refusal was directly stated the INX Media went ahead and violated the FIPB approval by making a downstream investment in INX News and generated Rs. 305 crores when the decided amount was 4.62 crores. All of this was alleged to be significantly easy to carry out because of P. Chidambaram, who was then the Finance Minister.
In March 2007, INX Media approached the then Chairman of FIPB- D Subbarao, hoping to get permission for issuing equity shares to three Mauritius based investors who were non-residents, this was planned to be carried out through the FDI route. The money laundered in this process, according to the FIR, was planned to be spent on operating and creating various television channels. Even though within few months the FIPB approved INX’s proposal, downstream investment was not approved though the clause regarding the FDI/NRI inflow of 4.62 crores was given a nod. The FIR clearly mentioned the violations of the approvals given by the FIPB and about how interests of the INX Media was fulfilled by issuing shares to foreign investors at an exceeded rate between August 2007 and May 2008.
The Chidambaramshave predictably denied all charges recorded against him and also they have blamed it all on political vendetta but also by not overlooking their family history, we come across many alleged economic irregularities that the family may have caused because of their intense influencing power that also alleged their involvement in cases like the Aircel- Maxis deal that intensified their family’s misery.
In conclusion, we can decipher that the Chidambarams or even Mukherjeas for the matter of fact were unable to exercise their power and position for true economic growth or progress. The law enforcing agencies were unable to hold anyone responsible until late this month. Soon, P. Chidambaram who is been remanded in the agency’s custody will be brought to court for questioning. Though, he has been non-cooperative and silent to all the questions asked to him regarding the INX Media files and his decision of knowingly approving those, sources have also claimed that the CBI may also ask for an extension on P. Chidambaram’s custody for further grilling. The Mukherjeasare also accused of ‘taking care’ of Karti Chidambaram’s offences. Though, the final decision is yet to come but the truth must be out even if it goes against the most powerful ‘white collar criminals’ or otherwise.
SUBMITTED BY-
ARPITA VARMA
STUDENT REPORTER, INBA