The Directorate of Enforcement has filed a prosecution sanction order against former Union Finance Minister P Chidambaram, marking a key procedural step that allows the agency to proceed with criminal prosecution under the Prevention of Money Laundering Act.
The prosecution sanction pertains to the alleged money laundering offence linked to the Aircel-Maxis deal, a case that has been under investigation for several years. Following the issuance of the sanction, the Enforcement Directorate has placed the order before the Special Court under the Prevention of Money Laundering Act at Rouse Avenue in New Delhi, seeking to move ahead with criminal prosecution in the matter, reports said on Thursday.
The agency has alleged that the transactions under scrutiny involved proceeds of crime arising from irregular approvals and financial arrangements connected to the deal.
In a parallel development, officials said the ED has also placed a separate prosecution sanction order in connection with the INX Media money laundering case before the same Special Court. The INX Media case relates to allegations that foreign investment approvals were granted in violation of prescribed norms, with the agency probing whether illicit proceeds were generated and laundered through complex financial transactions. With both sanction orders now before the court, the ED is expected to press for the commencement of trial proceedings in the two high-profile cases, even as P Chidambaram has consistently denied the allegations and maintained that the cases are without merit.
According to officials familiar with the development, the sanction order has been issued after the agency completed its investigation and sought mandatory government approval required to prosecute a former Union minister. With the sanction now in place, the Enforcement Directorate is expected to move the trial court to formally initiate prosecution proceedings in the case it has been probing.
The case relates to allegations of financial irregularities and money laundering, which the agency claims are linked to offences investigated by other authorities. The ED’s probe has focused on tracing the alleged proceeds of crime, examining financial transactions and assessing whether assets were acquired or routed through mechanisms intended to conceal their origin.
For P Chidambaram, a senior Congress leader who has held key portfolios including finance and home affairs, the sanction order adds to a series of legal challenges he has faced over the past several years. He has consistently denied wrongdoing in the cases against him, maintaining that the allegations are politically motivated and that all decisions taken during his tenure were within the framework of law and established procedure.
From a broader perspective, the filing of a prosecution sanction underscores the ED’s continued emphasis on pursuing high-profile cases involving former policymakers and senior public figures. Legal experts point out that while the grant of sanction enables prosecution to begin, the agency will still have to establish its case in court, where issues such as intent, evidentiary strength and procedural compliance are likely to be closely examined.