INX Media Case Scam: Seed and germination

INX Media case scam is a paradigm of money laundering case. In the year 2007, Foreign Investment Promotion Board (FIPB) gave clearance to INX group for Rs 4.65 crore for foreign direct investment. The Rs 4.65 crore was supposed to be used to create and operate television channels.

Central Bureau of Investigation alleged that the company went ahead with a huge amount of Rs 305 crore downstream investment against the inflow of Rs 4.65 crore approved by FIPB. The background is that the company allegedly provided fatty kickbacks to Karti Chidambaram to cover up this scam when the Income Tax Department sort out to clarify. His father P Chidambaram was the then Finance Minister, who was alleged to have moved the striker for the money to fall into the right place.

In 2017, the Enforcement Directorate filed a case against P Chidambaram, Karti Chidambaram, INX Media and, Peter and Indrani Mukherjea - the ex-directors of INX Media. 

In October 2017, P Chidambaram conveyed to Supreme Court that the allegations are politically- motivated vendetta against him and his son. In February 2018, Karti Chidambaram was arrested and was released on bail in March of the same year. Both were questioned on many occasions as well.

When Aircel was on the verge of huge bankruptcy, a foreign investor Maxis Communications from Malaysia decided to buy the shares. It was alleged that P Chidambaram withheld the FIPB approval demanding a share for his son Karti Chidambaram’s company in return.

The CBI was conducting a probe and no charges were pressed against P Chidambaram until recently. The Electorate Director uncovered Karti Chidambaram’s Rs 54 crore property in New Delhi, Ooty, United Kingdom and Barcelona which in turn connected to the case.

This twisted the knife and finally, P Chidambaram was charged with corruption, misuse of position, insider trading and money laundering. His request for anticipatory bail was not encouraged neither in the Delhi High Court nor in the Supreme Court. On 21st August, he was arrested following major theatricals and sent to CBI custody for four days.