The Central Bureau of Investigation (CBI) on Friday produced damning evidence in the Supreme Court against Karti Chidambaram, the son of former Finance Minister P Chidambaram, accusing him of “closing” foreign bank accounts containing lakh of British pounds during his visit abroad.
When the case was taken up for hearing on Friday, Additional Solicitor General (ASG) Tushar Mehta (who appeared for CBI) produced a sealed envelope before a Bench headed by Chief Justice Dipak Misra and said, “What he did abroad is contained in this envelope. When he was out of India, he went and closed his foreign bank accounts containing several lakh of Great Britain pounds. These accounts have been closed as per the reports prepared by the Financial Intelligence Unit (FIU).”
The ASG requested the court to look into the content of the sealed cover that explained Karti’s anxiety to visit abroad by seeking quashing of the lookout Circular (loC). “Thus material is directly related to the subject of why the loC must continue against him and that he should not be permitted to go abroad. I want this to be seen by the court. This shows what he will do if he is permitted to go abroad,” he said.
The Bench, also comprising Justices AM Khanwilkar and DY Chandrachud, decided not to examine the sealed cover at this stage for a technical reason. It was informed by the ASG that the CBI has filed a separate appeal against another order passed by a single judge of Madras High Court while dealing with Karti’s petition to quash the CBI FIR against him. The court decided to hear the present appeal of CBI with the fresh appeal on October 4.
Senior advocate Kapil Sibal who appeared for Karti opposed to opening of the sealed cover by claiming that documents cannot be presented to the court in this manner as the CBI had the recourse to lodge an FIR if it had found any fresh cause of action against his client.
“During interrogation they did not ask me (Karti) a single question related to the case. let me show my single signature on any bank account abroad. That will be documentary evidence and they can prosecute me under FERA or money laundering. I went abroad to meet my daughter in Cambridge,” he said.
The ASG said it is for the court to decide whether to see the material or not. He said the material makes a strong case why Karti should not be allowed to travel abroad.
Barred from travelling abroad due to a loC issued against him by the CBI on June 16, 2017, Karti had got the loC stayed from the Madras High Court. However, the SC reversed the HC’s decision last month on an appeal by the CBI. The case relates to grant of Foreign Investment Promotion Board (FIPB) approval given to one INX Media in 2007 during the tenure of P Chidambaram as Finance Minister.
Karti faces allegations that INX Media paid a bribe of Rs 5 crore to Advantage Strategic Consulting, linked to Karti, for obtaining FIPB approval for Rs 305 crore downstream investment. The CBI alleged that a criminal conspiracy was hatched between Karti and INX Media.