Hc Issues Notice To Chidambaram

The Delhi High Court yesterday issued notice to finance minister P Chidambaram after asking Janata Party president Subramanian Swamy to make him a party in his revision petition which alleged Chidambram had violated Prevention of Corruption Act while purchasing shares of Fairgrowth Financial Services Ltd (FFSL) in 1991.

Justice Jaspal Singh in his order said it appears Chidambaram has not been made a party in the revision petition. Let him be impleaded as a party. Amended memo of parties be filed and thereafter notices be issued for November 17.

Justice Singh on August 19 issued notice to the government of National Capital Territory on Swamys petition appealing against the lower court order dismissing the complaint against Chidambaram in limine (without issuing notice to respondents).

Swamy contended that Chidambaram while being the commerce minister had purchased 10,000 shares at a face value of Rs 10 per share when the market price was much higher, thus violating Section 11 and 13 of the act as it could be construed as receiving a consideration from the company.

Chidambaram spent around Rs 1.5 lakh to get the shares which would have cost him Rs 40 to 50 lakh at the market price, Swamy alleged.

Further, the joint parliamentary committee had in its report termed this as improper and noted the shares were given to the then commerce minister as the managing-director of FFSL was known to him, he said in his petition.

The Janata Party president alleged due to the issuance of promoters shares to Chidambaram, public sector undertakings (PSUs) invested around Rs 450 crore in FFSL making its shares in the stock market take a bullish trend.

He said the civil servants in the country were explicitly banned from accepting promoters shares and Chidambaram by obtaining these shares while being a public servant had violated the anti-corruption law.

Swamy questioned whether the buying of shares by Chidambaram was an inducement for PSUs to invest in FFSL and if so would it be regarded as a consideration received by the then commerce minister to cause the inducement.

He said CBI during the stock market scam involving Harshad Mehta had raided the company and seized 497 documents relating to various transactions and those could be scrutinised to throw more light on the issue in hand.

Swamys application in this regard under Section 190 of the Criminal Procedure Code was dismissed by special judge Ajit Bharihoke.