The Central Bureau of Investigation (CBI) on Tuesday said a process of investigation is into motion against former union minister P. Chidambaram's son Karti Chidambaram.
CBI Joint Director Vineet Vinayak said the investigation is still underway and some important evidences such as hard disks, mails and documents have been recovered.
Vinayak said a criminal case was registered yesterday under Sections of conspiracy, illegal gratification to influence a public servant, cheating and misuse of official position against five main individuals and entities, unnamed officials of Foreign Investment Promotion Board (FIPB) and others in the matters related in the grant of FIPB approval to INX media private Ltd, represented by its then directors Indrani Mukherjea and Pritam Mukherjea alias Peter Mukherjea.
Vinayak said the case was registered based on a prima facie evidence and searches were conducted at 14 locations including Chennai, Mumbai, Delhi, and Gurugram.
"We have set the process of investigation into motion.
All people whose involvement comes forth will be probed," he added.
He said the services of Chess Management, owned by Karti Chidambaram was sought by INX Media private Ltd. to seek approval from the AIPB to bring 46.2 percent of its issued equity which amount to Rs. 4.6 crore from three entities which were based in Mauritius.
"In the application the company had also mentioned that it would be making 26 percent downstream investment in its company INX news," he said.
"When this matter was processed at the FIPB, it was specifically mentioned that for 26 percent downstream investment the matter would require approval of the Ministry of Information and Broadcasting and a fresh approval and a fresh application would be required for the same," he added.
Vinayak said in 2008 a complaint was received by the Income Tax department about the FIPB approval granted for Rs 4.6 crore to the INX. He said that Rs. 1,000 crore was brought in illegally.
He said that it was in this case the services of the Chess Management was sought and accordingly a submission was filed to the FIPB.
"On account of this services rendered by the Chess Management, it was paid Rs. 10 lakh for which we have vouchers and those vouchers for this service was raised not by the Chess Management, but another company advantage Strategic Pvt. Ltd, owned by close associates of Karti Chidambaram," he said.
"In addition to these payments, there were three-four other vouchers which we have with regards to other issues which have certain common directors," he added.
Vinayak said the Economic Offences Wing of the Central Bureau of Investigation (CBI) registered the case on account of these facts.
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