The Central Bureau of Investigation (CBI) has lodged a fresh corruption case against Congress MP Karti Chidambaram, son of former Finance Minister P Chidambaram, accusing him of facilitating undue relief to Diageo Scotland in a case involving the ban on duty-free sales of its whisky products. The development was confirmed by officials on Thursday.
According to the CBI’s First Information Report (FIR), the investigation centers on an alleged questionable payment made by Diageo Scotland and Sequoia Capital to Advantage Strategic Consulting Pvt. Ltd. This entity is reportedly controlled by Karti Chidambaram and his associate, S Bhaskararaman.
The FIR highlights that “Diageo Scotland and Sequoia Capital suspiciously transferred funds to Advantage Strategic Consulting Pvt. Ltd., an organization under the control of Karti P Chidambaram and his aide, S Bhaskararaman.” These transactions, the agency alleges, were made under the guise of consultancy fees.
The case has its roots in events dating back to April 2005, when the India Tourism Development Corporation (ITDC) imposed a ban on the sale of duty-free imported liquor from the Diageo Group, including its flagship Johnnie Walker whisky. At the time, ITDC held a monopoly on the sale of such products in India. The embargo reportedly resulted in significant financial losses for Diageo Scotland, as duty-free sales of Johnnie Walker accounted for 70% of its business in the Indian market.
Seeking to resolve the issue, Diageo Scotland is alleged to have approached Karti Chidambaram, offering a payment of $15,000 to Advantage Strategic Consulting for what the CBI describes as “consultancy services” aimed at lifting the ban.
The CBI has stated that its investigation into the financial transactions of Advantage Strategic Consulting revealed suspicious activity. The agency has not yet received a response from the individuals named in the FIR.
As the probe continues, the allegations mark another significant development in the scrutiny of high-profile figures within Indian politics.
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