HC refuses to stay prosecution against Chidambaram's family members

The Madras High Court on Wednesday refused to stay prosecution proceedings launched by the Income Tax department against Chidambaram's wife, son and daughter-in-law for reportedly not disclosing their foreign assets.

The I-T department had on May 11 filed four chargesheets against Chidambaram's wife Nalini, son Karti and daughter-in-law Srindihi under the Black Money Act before a special court in Chennai.

The filing of the chargesheet against them added to the long list of legal owes to the former Union minister's family.

Karti was arrested in the INX scam and spent nearly a month in the Tihar jail, while Nalini is facing a probe by the Enforcement Directorate (ED) in the Sharada chit fund scam.

The cases have been filed under Section 50 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, which was passed by the Narendra Modi government to keep a tab on the unaccounted money.

Rejecting the plea filed by Chidambaram's family to quash the proceedings, Justice S Baskaran on Wednesday adjourned the cases to July 5 after ordering notice to the Income Tax officials.

The Chidambarams, in their petition, had contended that the Principal Director of Income Tax (Investigation) was not a competent officer to launch the prosecution under Section 50 of the Act and therefore the complaint filed against them should be quashed.

The I-T department had recently issued notices to Karti and his family members in the case, but the action was challenged before the Madras high court.