The Enforcement Directorate (ED) had sent notices to 19 firms, besides INX Media, that did business with Karti Chidambaram’s two companies – Advantage Strategic Consulting Private Limited (ASCPL) and Chess Management Services.
According to a report in media, after the raids in December 2015, the ED had sent summons to Essar Steel Limited, VST Tillers Tractors, Diageo Scotland Limited, and the Katra Group under the Prevention of Money Laundering Act (PMLA).
These firms had allegedly made payments to Karti’s two firms during their Foreign Investment Promotion Board (FIPB) applications or clearances.
One of the 19 firms appeared before the ED, but could not provide details of the services Karti’s two firms offered. ASCPL and Chess Management Services sent invoices for professional services,” or “consultancy work”, and according to ASCPL Director’s testimony to the ED, the company would receive instructions, stating which companies to send the invoices to. ED officials said that the ASCPL Director had admitted that the company barely provided any services.
The Central Bureau of Investigation (CBI) had on Tuesday raided houses and other premises of former finance minister P Chidambaram and his son Karti over alleged favours granted in foreign investment clearance to INX Media in 2007.
The searches were spread across Mumbai, Delhi, Chennai, and Gurugram. The raids took place at the Nungambakkam residence of P Chidambaram in Chennai, a senior police official said in Chennai.
The investigating agency had filed an FIR on Tuesday evening against Karti on charges of criminal conspiracy, cheating, receiving illegal gratification, influencing public servants and criminal misconduct. It is alleged that Karti received money from INX Media for using his influence to manipulate a tax probe against it in a case of violation of Foreign Investment Promotion Board (FIPB) conditions to receive investment from Mauritius.