FIPB officers examined by CBI did not say Karti approached them: HC notes

None of the senior officers of Foreign Investment Promotion Board (FIPB) who were at its helm when INX Media was granted FDI clearance, have said in their statements to CBI that they were approached or influenced by Karti Chidambaram, the Delhi High Court said today.

Justice S P Garg, in his order granting bail to Karti in the INX Media corruption case, also observed that in the entire CBI investigation so far, no public servant has been identified or apprehended who was allegedly approached or influenced to scuttle any action againt the media house for alleged irregularities or illegalities committed by it.

The high court noted that the senior FIPB officers had merely informed CBI that if the past history of the case been brought to the notice of the Board before its meeting held on October 24, 2008, its decision with regard to INX Media could have been different.

This assumes significance as Karti's lawyers, while seeking bail for him, had argued that no case under the Prevention of Corruption Act was made out against him since the CBI had neither questioned any public servant, nor made them an accused in the matter.

"During investigation, the prosecution recorded statements of senior officers under Section 161 Cr.P.C. who were at the helm of affairs at FIPB at the relevant time of grant of necessary approvals. They did not attribute or assign any specific and definite role to the petitioner (Karti) in the crime. None of the senior officers claimed to have ever been approached or influenced in the grant of approvals by the petitioner.

"The said senior officers did not name any official in the FIPB who was ever prevailed upon by the petitioner or his associates to impact their decision. During the entire investigation, none of the public servants has been identified or apprehended so far who was allegedly approached or influenced by the petitioner to scuttle the action against INX Media for the irregularities or illegalities committed by them," the high court said.

It noted that CBI has, however, collected material to prima facie infer a connection between Chess Management Services (P) Ltd (CMS), where Karti was a Director at the relevant time, and Advance Strategic Consulting (P) Ltd (ASC) which had received payment of Rs 10 lakh for allegedly facilitating the FIPB clearance to INX Media.

"... though allegedly consultancy services were provided by CMS of which the petitioner (Karti) was a Director, the invoice, in fact, was raised by ASC. It falsifies the petitioner's version that he had no concern whatsoever with ASC," the court said.

It also noted that from the statements recorded of various individuals along with the e-mails exchanged, "it can well be inferred that there was nexus between CMS and ASC".

"No plausible explanation has been given by the petitioner as to how and why, for consultancy services purportedly given by CMS, invoice in the sum of Rs 10 lakh as professional fee was raised on behalf of ASC. This incriminating circumstance, however, alone is not sufficient at this stage to deny bail to the petitioner as this payment was duly accounted for in the records and was received by a cheque," the court said.

It said it was a matter of trial as to who was the ultimate beneficiary of the amount and added that "no credible evidence has been produced on record regarding the exact relationship of the petitioner (Karti) with ASC".