Trouble for P Chidambaram: ED files prosecution sanction against former minister in money-laundering case

ED had initiated investigation against Chidambaram based on an FIR registered by the CBI in October 2011.

New Delhi: The Centre has granted sanction to prosecute former Finance Minister P Chidambaram in the Aircel-Maxis money laundering case following which the Enforcement Directorate has approached a special court seeking a speedy trial.

The agency had initiated investigation against Chidambaram based on an FIR registered by the CBI in October 2011, claiming a “quid pro quo” in the granting of clearance for Maxis’ FDI of $800 million in Aircel illegally when he was Finance Minister under UPA government.

The Special Court had taken cognizance of ED’s prosecution complaint, an equivalent of chargesheet, but a Supreme Court mandating ED to seek prosecution sanction in certain types of cases, the agency said, had led to a delay in trial.

Several accused had used the November 2024 Supreme Court directive to challenge their trials and counter this, it said adding, the ED has “swiftly initiated” remedial actions by seeking prosecution sanctions in all prosecution complaints involving public servants. It said the ED also sought sanction to prosecute Chidambaram, which was granted on February 10.

“The prosecution sanction order has been placed before the Special Court, Rouse Avenue by the ED to expedite the trial in the case,” it said.

According to the ED, Chidambaram was competent to approve FDI proposals involving total investments of Rs 600 crore or less but he gave the green signal for for the deal between Aircel and Maxis in which the latter, the foreign investor, had sought approval for FDI of USD 800 million or Rs 3,561.91 crore.

As part of a “larger conspiracy”, it claimed, approval was “fraudulently and dishonestly” granted by Chidambaram with the agency claiming his son and Congress MP Karti received a bribe of 1.16 crore. Chidambaram and Karti had denied any wrongdoing in the case.

The ED claimed Rs 1.16 crore was received by Karti in his companies M/s Advantage Strategic Consulting Pvt Ltd (ASCPL) and M/s Chess Management Services Pvt Ltd (CMSPL).

“Investigation has revealed financial transactions between P Chidambaram and his son Karti... Investigation has also revealed that funds of ASCPL have also been spent for and on behalf of P Chidambaram,” it said.

A Prosecution Complaint was filed on 13 June, 2018 and a supplementary chargesheet was filed on 25 October, 2018 while the special court had in November 2021 taken cognizance of the commission of offence of money laundering.