Congress MP Karti Chidambaram moves Delhi High Court to defer charges in money laundering cases

New Delhi: Congress MP Karti Chidambaram on Monday moved the Delhi High Court seeking directions to defer hearing on framing of charges in the trial court in money laundering cases arising from alleged Chinese visa scam and Aircel Maxis scam being probed by the CBI.

The senior counsel appearing for the son of former Union minister P Chidambaram said since framing of charges was "irreversible", the same should be deferred in the two money laundering cases until charges were framed in the CBI cases dealing with the scheduled offences.

Justice Ravinder Dudeja deferred the hearing till April 9 after the counsel appearing for the Enforcement Directorate (ED) said the Supreme Court had passed an order on the issue.

The agency's counsel stated that as per the top court's order, the trials in CBI and ED cases were independent, but the final order in the money laundering case would await the outcome in the predicate case.

Karti Chidambaram's counsel said the CBI cases against him were still at the stage of scrutiny and supply of documents, but in the ED cases, arguments were slated for April 15.

In two petitions, Karti Chidambaram challenged March 28 orders by the trial court, which dismissed his applications seeking deferment of arguments on charges until the charges, if at all, were framed against him in the CBI cases.

The plea in the high court emphasised that the foundation of the ED's case was questionable as if an individual was discharged or acquitted in the scheduled offence or succeeded in quashing it, the money laundering offence could not be proceeded with.

It further submitted that the trial court failed to consider that to raise his defence of non-existence of proceeds of crime or non-commission of any scheduled offence, Karti Chidambaram would have to necessarily disclose his defence in respect of the scheduled offence case.

"The gravamen of the case is a part of the investigation in the alleged predicate offence and has to be established and proved in the prosecution of the predicate offence. Unless the same is proven, there can be no foundation for any offence of money laundering.

"Therefore, without a 'subsisting prosecution' in the alleged predicate offence where the above allegation is proved, at least prima facie, after taking of cognisance and framing of charges (if any), there is no basis for any allegation of money laundering of this alleged bribe amount," the petition filed through lawyer Akshat Gupta said.

The ED registered a money laundering case against Karti Chidambaram and others in the alleged scam involving the issuance of visas to 263 Chinese nationals in 2011 when his father P Chidambaram was the Union home minister.

It registered its case under the provisions of Prevention of Money Laundering Act (PMLA), taking cognisance of a recent FIR filed by the CBI in the same case.

The other case relates to alleged irregularities in the grant of Foreign Investment Promotion Board (FIPB) approval in the Aircel-Maxis deal.

The approval was granted in 2006 when P Chidambaram was the Union finance minister.

The CBI and the ED have alleged that as the finance minister, P Chidambaram granted approval to the deal beyond his capacity, benefitting certain persons, and received kickbacks.