What is the issue?
CBI has arrested a former Finance Minister’s son in a case involving INX Media for violation of FIPB conditions in 2007.
What is the case?
- The Foreign Investment Promotion Board (FIPB) had cleared the inflow of Rs. 4.62 crores to INX Media in 2007.
- However, the company made a downstream investment in another company, INX News, which received Rs. 300 crores through premium shares.
- As such downstream investment required separate clearance from the FIPB, there seems to be a clear case of violation.
- As an FIPB inquiry against INX Media was expected to commence, the company is said to have sought Mr. Karti Chidambaram’s help.
- Mr. Karti is alleged to have taken a $1 million to influence the probe against the media house by using his connections in the finance ministry.
How did the case get exposed?
- Indirani Mukerjea was the former director of the INX Media.
- She is currently facing CBI prosecution along with her husband Peter Mukerjea for the murder of her daughter Sheena Bora.
- In one of her statements to the CBI, she is said to have claimed that the company had bribed Mr. Karti, to quash the possible FIPB probe.
- Ms. Indirani’s statement also got recorded before a magistrate, which hence becomes admissible as evidence to prosecute Mr. Karti.
- An FIR was then registered in May 2017 against Mr. Karti, his previous company “Chess Management Services” and another alleged collaborator firm.
- Consequently, Mr. Karti was recently arrested by the CBI in Chennai and was produced in front of a metropolitan magistrate in Delhi.
- While the agency is thought to be seeking extension of custody, Mr. Karti has stated that the charges against him are politically motivated.
How does the future course look?
- While the allegations are serious and deserves a thorough probe, whether securing Mr. Karti’s custody is needed is debatable.
- Notably, there also seems to be no apprehension of Mr. Karti fleeing abroad to escape prosecution.
- Additionally, considering the case outlay, the evidence seems to be largely documentary in nature – making evidence tampering a remote possibility.
- The case against Mr. Karti will add up to something only if CBI is able to furnish specific details to establish his involvement in the conspiracy.
- Failure to do so will hence give greater credibility to those who dismiss the case against Mr. Karti as political vendetta.
Source: The Hindu
