Chinese visa scam: ED registers money laundering case against Karti Chidambaram, others

The Enforcement Directorate (ED) will probe the possible 'proceeds of crime' that could have been generated due to the alleged illegal activity

In further trouble for Karti Chidambaram, the Enforcement Directorate has registered a case against the Congress MP and others in connection with the investigations into the alleged bribery of Rs 50 lakh to help 263 Chinese nationals get visas to work in a project in Punjab 11 years ago.

His father P Chidambaram was Home Minister when the alleged incident took place.

The ED action to file a case under the Prevention of Money Laundering Act (PMLA) came after taking cognisance of a First Information Report (FIR) filed by the CBI in the same case.

The ED will probe the possible "proceeds of crime" that could have been generated due to the alleged illegal activity, officials said. Karti has denied allegations against him and called the latest case a "witch hunt".

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The CBI had last week arrested S Bhaskararaman, auditor and a close aide of Karti, in connection with the case, a day after the CBI conducted searches in several locations, including Chennai and Delhi, last Tuesday.

The CBI has alleged that the visas were granted to the Chinese nationals working in the Talwandi Sabo power project in Punjab in July-August 2011 during the UPA-II government.

It had said the project needed additional manpower from China as the thermal power plant was being installed by a Chinese company and it was running behind schedule. However, the firm could not bring enough people due to a ceiling on allowing work permits of foreign nationals.

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“…there is reason to believe that the then Home Secretary and Home Minister were in the knowledge of the matter… but it is not ascertained at this stage whether, P Chidambaram, the then Home Minister and the then Home Secretary were in the knowledge of afore-said demand and payment of illegal gratification or not,” it adds.

Talwandi Sabo Power Limited, a Vedanta company, approached Karti’s aide Bhaskararaman for the visas. Vikas Makharia of TSPL submitted a request on July 30, 2011, to the Ministry of Home Affairs (Foreigners Division) seeking permission to re-use the Project visas already issued to the company, the CBI claimed.

Bhaskararaman asked Makharia, according to the FIR, to forward a copy of the letter to Karti after which an illegal gratification of Rs 50 lakh was asked for the approval. The FIR also states Karti discussed the issue with Chidambaram, the then Home Minister.