The Central Bureau of Investigation (CBI) officials today raided
multiple premises linked to former Union Finance minister P Chidambaram
and his son Karti in Tamil Nadu as well as other states. The raids were
conducted in connection with alleged favours granted in FIPB clearance
to a firm, according to PTI. Official sources told the agency that the
raids were carried out in Mumbai, Delhi, Chennai, and Gurugram. The
raids were also carried out at Chidambaram's Chennai residence in
Nungambakkam, they added. Some reports said that raids were also carried
out at Chidambaram's hometown Karaikudi.
Why CBI carried out the raids?
CBI has not
issued any official statement about the reason of the raids. ANI quoted
reports as saying that the raids were a part of an investigation into
the Aircel-Maxis case. Reports also said that the raids may have been
carried out in connection with the clearances given to INX media, which
was once owned by Peter Mukerjea, according to ANI.
The probe
agency had recently filed a case regarding Foreign Investment Promotion
Board (FIPB) clearance given to a company, which received alleged
favours when Chidambaram was India's Finance minister.
Karti is
facing alleged money laundering charges in connection with the
Aircel-Maxis deal. His offices were raided in past as well.
What is Aircel-Maxis case?
Foreign
Investment Promotion Board (FIPB) clearance was given to Aircel-Maxis
by Chidambaram in 2006. On April 17 this year, PTI reported that
Enforcement Directorate (ED) was probing several aspects of FIPB
approval given to Aircel-Maxis including the role of Chidambaram under
anti-money laundering laws.
In a statement, ED had said,
"Investigations under the Prevention of Money Laundering Act (PMLA) are
going on in respect of FIPB approval given to Aircel-Maxis by the then
Finance Minister (Chidambaram)...In the case, foreign inflow was Rs
3,500 crore (approximately) whereas as per government policy and FIPB
guidelines competent authority was Cabinet Committee of Economic Affairs
for any inflow above Rs 600 crore.?
In a sealed cover, the ED recently filed before the Supreme Court a status report of its ongoing investigation in this case.
What is FIPB?
The
Foreign Investment Promotion Board (FIPB) offers a single window
clearance for applications on Foreign Direct Investment (FDI) in India
that are under the approval route. According to the official website of
FIPB (fipb.gov.in) the sectors under automatic route do not require any
prior approval from FIPB and are subject to only sectoral laws.
FIPB
comes under the Depart of Economic Affairs, Ministry of Finance. It is
an inter-ministerial body, responsible for processing of FDI proposals
and making recommendations for Government approval.
FIPB rules
say, "Recommendations of FIPB in respect of the project proposals each
involving a total investment of Rs 600 Crore or less would be considered
and approved by the Industry Minister. The recommendations in respect
of the projects each with a total investment of above Rs 600 Crore would
be submitted to the Cabinet Committee on Foreign Investment (CCFI) for
decision."
What Chidambaram said
ANI reported the former
Finance Minister as saying that the government was trying to silence his
voice with the raids. "Government by using CBI and other agencies is
targeting my son and his friends. The government wants to silence my
voice," he said, adding, "The government wants to stop me from writing
as it has tried to with leaders of Opposition parties, journalists,
columnists, NGOs and civil society."
The former Finance Minister
further clarified that no wrongdoings were done under his watch in
connection with the FIPB approval. "Every case was processed according
to the law and approval granted or refused accordance with FIPB
recommendations consisting of five Government of India Secretaries," ANI
reported him as saying.
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