After the Aircel-Maxis and INX Media bribery cases, the probe agencies have come across another case of irregularity in clearance given by the Foreign Investment Promotion Board (FIPB) when P Chidambaram was Finance Minister in 2005 and his son Karti was involved in the deal.
According to the findings of CBI and Enforcement Directorate (ED), Karti’s firm Advantage Strategic Consulting Private limited accepted Rs 10 lakh from Katra Holdings for getting them FIPB clearance to invest Rs 4.66 crore in a Bangalore-based distillery M/s Mason and Summer Alcobev Pvt ltd. The agencies are expected to register a fresh FIR in this case soon.
Karti’s firm accepted the bribe on August 20, 2005 from Katra Holdings, registered in Mauritius, for using his clout in the Finance Ministry for FIPB clearance. When Katra Holdings transferred Rs 10 lakh to the account of Advantage Strategic Consulting, the FIPB clearance of the company
was pending before father Chidambaram. The FIPB clearance was given by Chidambaram on August 26, six days after son’s firm accepted the bribe, said sources.
Both Katra Holdings and M/s Mason and Summer Alcobev Pvt ltd belong to the Bangalore-based Katra Group. The promoters of this group are industrialist Ramesh Vangal and wife Katarzyna Zimpel, having many firms in hospitality, health, petroleum, shipping, logistics and banking sectors. In 2008, Ramesh Vangal’s Foreign Institutional Investor (FII) consortium acquired around 25 per cent shares of Tamil Nadu Mercantile Bank.
like INX Media bribe case, the matter came to light in the joint raid by the ED and Income Tax at Karti’s firms in connection with Aircel-Maxis probe.
The agencies have tracked the money transaction invoices of both Katra Holdings and Karti’s Advantage Strategic Consulting. The Advantage raised an invoice (No: ASCPl/0506/003) dated August 20, 2005 for Rs 10 lakh plus service taxes on Katra Holdings. The Advantage received a payment of Rs 9,39,050 (after Tax Deducted at Source or TDS).
The agencies are expected to register a fresh case under Prevention of Corruption Act and Prevention of Money laundering Act against Chidambaram and son. Meanwhile, Chidambaram is expected to be summoned by the CBI and the ED in the Aircel-Maxis and INX Media bribe case soon.