ED attaches Rs 1.16 cr assets of Karti’s co for money laundering

Source: The Hitavada      Date: 26 Sep 2017 08:33:42


 

NEW DELHI,

THE ED on Monday attached assets worth Rs 1.16 crore of former Finance Minister P Chidambaram’s son Karti and a firm allegedly linked to him in connection with its money
laundering probe in the Aircel-Maxis deal.
The agency issued a provisional attachment order, signed by Joint Director and investigating officer of the 2G spectrum allocation cases Rajeshwar Singh, under the Prevention of Money Laundering Act (PMLA) for attaching the assets.


“Enforcement Directorate has attached movable assets held by ASCPL (Advantage Strategic Consulting Private Limited) in the form of fixed deposits to the tune of Rs 26 lakh and movable assets held by Karti P Chidambaram in the form of fixed deposits and balance in saving bank account to the tune of Rs 90 lakh approximately,” the central probe agency said.
The firm ASCPL is allegedly linked to Karti and the ED said it was “controlled” by him through another person, identified as S Bhaskararaman, whom Karti had described to the agency as his Chartered Accountant and Chief Financial Officer (CFO), the agency said.
In his reaction, the senior Chidambaram called the ED action “a crazy mixture of falsehoods and conjectures”. “The press note is intended to intimidate me and to silence my voice. I will not be intimidated,” he said.


Official sources in the ED said while P Chidambaram states that the “only” chargesheet in the case has been quashed, the FIR still stands and that Karti was not named in that complaint.
“This is a fresh probe against Karti in connection with the Aircel-Maxis case,” a source said.


The case pertains to the Foreign Investment Promotion Board (FIPB) approval granted in 2006 by P Chidambaram.The agency said it is investigating “the circumstances of said FIPB approval granted by the then finance minister (P Chidambaram)”.
The ED also alleged that Karti has “disposed” of a property in Gurgaon, which he had allegedly rented out to a multi national company “to whom foreign direct investment (FDI) approval had been granted in 2013”.


It charged that Karti had “also closed certain bank accounts and attempted to close other bank accounts in order to frustrate the process of attachment” under the PMLA. The CBI has recently told the Supreme Court that Karti was prevented from travelling abroad as he was allegedly closing several of his foreign bank accounts.


The hearing in the apex court was in connection with another CBI FIR, lodged on May 15, where it has been alleged that irregularities in FIPB clearance to INX Media had occurred, for receiving overseas funds to the tune of Rs 305 crore in 2007. The agency said FIPB approval in the Aircel-Maxis FDI case was granted in March, 2006 by the then FM even though he was competent to accord approval on project proposals only up to Rs 600 crore and beyond that it required the approval of the Cabinet Committee on Economic Affairs (CCEA).


“In the instant case, the approval for FDI of 800 million USD (over Rs 3,500 crore) was sought. Hence, CCEA was competent to grant approval.
“However, approval was not obtained from CCEA,” it alleged.
The agency said its probe revealed that the case of the said FDI was “wrongly projected as an investment of Rs 180 crore so that it need not be sent to the CCEA to avoid a detailed scrutiny.”


It added that a payment of Rs 26 lakh was made by Aircel Televentures Limited to ASCPL, the firm allegedly linked to Karti, within a few days of the FIPB approval. The agency also chargedthat a firm promoted by Karti and senior Chidambaram’s nephew A Palaniappan-- CMSPL--received a sum of about USD 2 lakh from the Maxis group allegedly for procuring a legal compliance software.

It said probe revealed that the “software was designed only for use in India and hence was of no use to a Malaysian company.” The ED said further probe to “identify” other proceeds of crime as well as indirect benefits derived from them is “continuing” in this case. The agency is probing the Aircel-Maxis deal under the PMLA after taking cognisance of a 2011 CBI FIR in the case.