The noose has been tightened around former Finance Minister P Chidambaram in the Aircel-Maxis scam. The Enforcement Directorate (ED) and the Income-Tax (I-T) Department on Tuesday conducted raids in over a dozen locations in Chennai on companies and associates connected with Chidambaram’s son Karti. Reacting to the raids “on son’s friends”, Chidambaram said he and his family were “prepared for the malicious onslaught by the Government.” The CBI has already examined Chidambaram in connection with the Aircel-Maxis case.
The Central Board of Direct Taxes (CBDT) denied allegations of the former Finance Minister and said the raids were conducted on credible information and not “for collateral purpose.”
In the wee hours of Tuesday, the ED and I-T sleuths landed at various locations of companies — Advantage Strategic Consulting Private limited and its associate Vasan Eye Care — which are being probed in connection with the Aircel-Maxis deal.
The Pioneer had published a series of reports on the mysterious transaction between Advantage Strategic Consulting and Aircel, when files of the takeover of Aircel by Malaysian company Maxis were pending with then Finance Minister Chidambaram in early 2006.
In August, the ED had summoned four persons linked to these companies, but three of them did not appear before the ED and evaded all queries. All of them produced fake medical certificates.
Reacting to the raids, Chidambaram issued a statement, challenging the Government to target him directly, rather than his son’s friends. “I am travelling and I have been informed about searches conducted on certain firms in Çhennai allegedly liked to my son. If the Government wishes to target me, they should do so directly, not harass friends of my son who carry on their own businesses and have nothing to do with politics.
“We have made it clear, repeatedly, that no member of my family has any equity or economic interest in any of the firms that are being targeted. They are companies that are professionally managed and are capable of answering any questions that may be put to them by the authorities. I condemn the attempt to link them to my son and harass them on that ground,” he said
In his statement, Chidambaram also accused ED’s Deputy Director Rajeshwar Singh, the Investigating Officer of the 2G scam and Aircel cases of “misusing his power to harass my son and his friends”. However he did not name him. “The agenda of the Government is being implemented by an officer of the Enforcement Directorate who has a pending dispute with the Department of Revenue, Ministry of Finance. Orders in his case were apparently passed during the term of my predecessor. He met me and wanted me to intervene in his favour. I declined and I told him that I cannot reverse orders that were issued during the term of my predecessor. The change of Government has given him an opportunity to misuse his powers to harass my son and his friends,” said Chidambaram.
During Chidambaram’s tenure in the Finance Ministry in December 2013, the Revenue Department had tried to shunt out Singh, who was selected by the Union Public Service Commission (UPSC) for permanent cadre in the ED. In a strange move, the Finance Ministry had rejected the UPSC’s recommendation and the Central Administrative Tribunal (CAT) had issued an order to absorb Singh in the ED. But the Finance Ministry did not adhere to the CAT order.
The officer was re-instated after a rap from the Supreme Court in September 2014 on a petition filed by BJP leader Subramanian Swamy.
Meanwhile, rejecting Chidambaram’s allegations, the CBDT said the raids at businesses belonging to associates of Karti were based on credible information. “These are consequential to the on-going investigations. There is no collateral purpose behind such actions and no political person or his family member are today shareholders or directors of the companies searched or surveyed by the I-T Department,” it said.
“Certain incriminating evidence indicative of tax evasion and financial irregularities have been recovered during the on-going investigation. Further action as per law will follow,” added the CBDT.