The Central Bureau of Investigation (CBI) on Thursday charged senior Congress leader and former Union finance minister P Chidambaram and his son Karti Chidambaram in the Aircel-Maxis case, prompting allegations of political vendetta from the principal opposition party with the charge sheet being filed just a day before the Lok Sabha was slated to debate a no-confidence motion against the government.
The former finance minister termed the allegations against him as “preposterous”.
“CBI has been pressured to file a charge sheet to support a preposterous allegation against me and officers with a sterling reputation. The case is now before the Hon’ble Court and it will be contested vigorously. I shall make no more public comment,” Chidambaram tweeted.
Jitendra Singh, the minister of state for Prime Minister’s Office, said, “Congress leaders are saying this due to their own experience when during the UPA rule investigation agencies were misused to further the political agenda. Ever since the Modi government has taken over charge, the investigation agencies work with full freedom and there is no political interference in their working.”
The case refers to a 2006 investment in Indian telco Aircel Ltd by Malaysia’s Maxis Communications which, according to CBI, was a violation of then prevailing foreign investments laws.
The charge sheet was filed in the special court of judge OP Saini who will consider it on July 31.
“Though linked with the Aircel-Maxis matter, it is a separate charge sheet since it pertains to a separate offence,” said CBI spokesman Abhishek Dayal.
The agency has invoked charges of criminal conspiracy, criminal misconduct by a public servant and illegal gratification in the case.
Besides the Chidambarams, the agency has also named Malaysian nationals T Ananda Krishnan, the founder of Maxis, and Ralph Marshall; former Union secretary for economic affairs Ashok Kumar Jha, then additional secretary Ashok Chawla (both Jha and Chawla were designated finance secretaries), two serving IAS officers, Sanjay Krishna and Deepak Kumar Singh, an undersecretary Ram Sharan; individuals S Bhaskarraman, A Palaniappan and V Srinivasan; and several companies, Chess Management, Advantage Strategic, Astro All Asia Networks, Maxis Mobile, Bumi Armada and Bumi Navigations.
CBI has alleged that despite the fact that investment of $800 million (over Rs 3,500 crore) was made in Aircel by Maxis, and the Cabinet committee on economic affairs was the competent authority to grant approval, the investment proposal was wrongly projected as merely involving an investment of Rs 180 crore and approval was granted by the then finance minister P Chidambaram.
Investigators alleged that Aircel paid around Rs 26 lakh to Advantage Strategic Consulting Private Limited on April 11, 2006 and that this company was controlled by Chidambaram’s son Karti Chidambaram.
Investigators have also alleged that another company of Karti Chidambaram, Chess Management Services Private Limited received $200,000 from Malaysian companies such as Bumi Armada Berhad and Astro All Asia Networks Plc, all connected with Maxis, between 2007 and 2012
Before filing the charge sheet, CBI questioned P Chidambaram and his son multiple times.
This is the second high-profile investigation involving the deal.
In another case (the first one), CBI has alleged that then telecom minister Dayanidhi Maran in 2005 deliberately delayed the grant of licences to entrepreneur C Sivasankaran-owned Aircel in seven circles with the intent to force the promoter to sell out. Once Maxis bought Aircel, all pending applications for licences were accepted, the agency claimed. The agency also claimed that after the change of ownership of Aircel, Astro All Asia Networks Plc (an affiliate of Maxis) invested in the Kalanithi Maran-owned Sun Direct TV in a quid pro quo.
Last year, the special CBI court discharged the Maran brothers and two companies — Sun Direct TV Pvt Ltd and South Asia Entertainment Holding Ltd – in the case. The agency has challenged the discharge order in the high court. Since the two Malaysian nationals and two companies didn’t submit themselves before the court, the case against them is still pending.
An email sent to Maxis remained unanswered. Ashok Chawla could not be reached for comment.
