Shell firm paid P Chidambaram's travel and other expenses: ED

According to the source, when the former Finance Minister was asked about his travel bills and other expenses being paid by the shell company, he described them as baseless.

Published: 24th August 2019 09:32 PM  |   Last Updated: 25th August 2019 11:02 AM   |  A+A-

Congress leader and former finance minister P Chidambaram is being taken to court by the Central Bureau of Investigation CBI officials in the INX Media money laundering case in New Delhi.

Congress leader and former finance minister P Chidambaram is being taken to court by the Central Bureau of Investigation CBI officials in the INX Media money laundering case in New Delhi. (Photo | PTI)

By IANS

NEW DELHI: The Enforcement Directorate (ED) is set to tighten the noose around former Finance Minister P. Chidambaram in the INX media case following the revelation by chartered accountant Bhaskar Raman that a shell company, also owned by Karti Chidambaram, paid for his travel and other expenses.

A senior ED source related to the probe told IANS, "The revelations were made during Raman's questioning last year." The details of payments for the travel bill and other expenses were found in the documents and hard disks, seized by the Income Tax authorities during raids at the official premises of Karti-promoted Chess Global Advisory Services in Chennai.

"When Raman was confronted with the documents and hard disks he confessed about the same," the official said. Raman, arrested by the Centrel Bureau of Investigation (CBI) last year, is out on bail.

READ: INX Media case: Chidambaram enjoying government hospitality, says son Karti

According to the source, when the former Finance Minister was asked about his travel bills and other expenses being paid by the shell company, he described them as baseless.

The CBI had arrested Chidambaram on Wednesday after a 24-hour drama in a case of alleged irregularities in the grant of the Foreign Investment Promotion Board (FIPB) clearance to the INX media group, when he was the Finance Minister. Next day, a Delhi court sent him to five-day CBI custody.

The ED was also probing bank accounts of Advantage Strategic Consulting (ASCPL) as the documents also mentioned its name, the source said.

According to sources, in September 2008 ASCPL received Rs 35 Lakh from INX Media (now known as News X TV Channel), which had applied for the FIPB nod to its $220 million proposal during the period.

On the same day, Rs 60 Lakh was paid by INX Media to Northstar Software Solutions. Majority stake in Northstar Software Solutions is controlled by C.B.N. Reddy, who is also a director at ASCPL and its Singapore subsidiary.

The source said the ED was also probing five different directors of ASCPL. Besides Reddy and Raman, also on the financial probe agency's radar are Mohanan Rajesh, Ravi Viswanathan and V Padma.

According to the source, the agency suspects the father-son duo of owning several immoveable properties and over 16 bank accounts in other countries, which they are trying to identify to get find out the money trail.

The ED probe has also highlighted how persons connected with shell companies executed a will in favour of Chidambaram's grand-daughter.

On Friday, the CBI sent letter rogatory to the United Kingdom, Switzerland, Bermuda, Mauritius and Singapore, seeking details of shell companies allegedly floated by Chidambaram and his son and their bank account details.

The CBI is investigating Chidambaram in the INX Media case, registered on May 15, 2017, alleging irregularities in the FIPB clearance granted to it for receiving overseas funds of Rs 305 crore in 2007 during his tenure as the Finance Minister.

Stay up to date on all the latest Nation news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp