The Delhi High Court has temporarily halted trial court proceedings against senior Congress leader P. Chidambaram in connection with the Aircel-Maxis money laundering case. Justice Manoj Kumar Ohri, presiding as a single-judge bench, also issued a notice to the Enforcement Directorate (ED) regarding the matter.
What the court said?
This decision followed a petition filed by the former Union Minister challenging a trial court’s order that had taken cognizance of the ED’s chargesheet against him and his son, Karti Chidambaram, in the same case. Senior Advocate N. Hariharan, representing Chidambaram, argued that the trial court should not have taken cognizance without obtaining prior prosecution sanction, as Chidambaram was a public servant at the time of the alleged offense. He referenced a recent Supreme Court ruling that underscored the necessity of prosecution sanction under the Prevention of Money Laundering Act (PMLA) when prosecuting public servants.
The ED, however, contested this position, asserting that a prosecution sanction was not required since the allegations against Chidambaram pertain to his actions outside the scope of his official duties.
What is Aircel-Maxis case?
The Aircel-Maxis case revolves around alleged irregularities in granting Foreign Investment Promotion Board (FIPB) approval for a ₹3,500 crore deal in 2006 when Chidambaram served as the Union Finance Minister in the UPA-I government. The ED has accused Chidambaram and his son of receiving kickbacks in exchange for ensuring the deal’s approval. The Central Bureau of Investigation (CBI) and the ED both filed chargesheets in the case in July 2018, and in November 2021, the trial court took cognizance of these charges. The trial court determined there was sufficient evidence to summon Chidambaram, his son, and other accused in the case.
Aircel-Maxis case over years
Aircel, an Indian telecom operator founded by C. Sivasankaran, was acquired in 2006 by Malaysia’s Maxis Berhad, owned by Ananda Krishnan, a Malaysian citizen of Sri Lankan Tamil descent. Maxis acquired a 74% stake in Aircel, a deal that later came under scrutiny. In 2011, Sivasankaran filed a complaint with the CBI, alleging he was coerced into selling his stake to Maxis. He also accused former Union Minister Dayanidhi Maran and his brother, Kalanithi Maran, of receiving kickbacks through investments made by the Maxis group in Sun TV Network, which the Maran family owns.
The CBI registered a case on October 10, 2011, followed by the ED initiating a money laundering case in 2012. The Maran brothers were accused of illegally receiving approximately ₹550 crore in compensation related to the deal.
Allegations against P Chidambaram
BJP leader and advocate Subramanian Swamy alleged that a company controlled by Karti Chidambaram received a 5% stake in Aircel as a quid pro quo for facilitating FIPB clearance of the Aircel-Maxis deal. According to Swamy, P. Chidambaram delayed granting the approval until his son secured the stake. Swamy further alleged that Chidambaram, in his role as Finance Minister, ensured the FIPB cleared the deal only after Karti’s company was granted its share.
The BJP, then in opposition, frequently raised this issue in Parliament, calling for Chidambaram’s resignation. Chidambaram consistently denied all allegations.
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