The Enforcement Directorate on Thursday chargesheeted former Finance Minister P Chidambaram as an accused for conspiring with foreign investors in the Aircel-Maxis scam and engaging in money laundering.
The agency also named Chidambaram family’s chartered accountant Bhaskararaman, Maxis CEO and Malaysian citizen Ralph Marshal and former CEO of Aircel V Srinivasan in the chargesheet.
Maxis group’s four subsidiary firms were also indicted as accused for money laundering and routing kickbacks. The ED had already chargesheeted Chidambaram’s son Karti and nephew Palaniyappan and their firms as accused on June 13. After hearing prosecutor’s preliminary arguments, Judge OP Saini has fixed November 26 for consideration for the chargesheet.
The nine people and firms indicted are charged for money laundering of Rs 1.16 crore. This was a bribe for facilitating through Chidambaram grant of Foreign Investment Promotion Board (FIPB) approval to Malaysian firm Maxis to take over Aircel in March 2006.
The ED also said further proceeds of crime were tracked down and attached the Rs 55 crore worth properties and farm houses of Karti in Delhi, Ooty, London and Spain.
The ED has said the FIPB approval was given to the foreign investor Global Communication and Services Holdings Limited, Mauritius in violation of the various rules and regulations governing the FDI policy in India.
“As per rules and FDI policy of Government of India in 2006, Chidambaram, the then Finance Minister was empowered to give approval of the foreign investment to the proposals involving foreign investment up to Rs 600 crore only. The foreign investment proposal of Global Communication and Services Holdings Limited was of USD 800 million which amounts to Rs 3,560 crore approximately (when 1 USD was Rs 44.5).
“The foreign investment proposal of Global Communication and Services Holdings Limited should have been referred to Cabinet Committee on Economic Affairs (CCEA) but it was not done and approved by Chidambaram under a conspiracy,” said the ED, filing the second supplementary charge sheet frilled on Thursday.
The ED has charged the accused under sections 3 and 4 of the Prevention of Money Laundering Act and if found guilty, they would be liable to a jail term of up to seven years along with fine. The agency said the charge sheet is based on adequate material evidences which are in the form of email communications retrieved from the seized digital devices from Karti and his associates.
The material evidences reveal routing of proceeds of crime in the guise of bonafide business deals by the beneficiaries of illegal FIPB approval in the companies of Karti. The investigation has revealed the financial linkage of Karti Chidambaram and P Chidambaram with these companies, said ED’s prosecutors.
“There are contradictory and evasive responses, in spite of that ED has collected materials that is corroboratory statements recorded under Section 50 of the PMLA from various persons during the investigation to substantiate the offence of money laundering,” the ED said.
Advocates NK Matta and Nitesh Rana appeared for the ED in the court. The CBI had already chargesheeted Chidambaram and son along with four IAS officers and Maxis owners on July 19.