The Enforcement Directorate (ED) has obtained a crucial prosecution sanction from the central government against former Union Minister P. Chidambaram in two distinct money laundering cases: the Aircel-Maxis deal and the INX Media case. This development, confirmed on Monday, February 20, 2023, allows the federal agency to proceed with the prosecution, removing a significant legal hurdle for the trials to commence or progress in these long-standing investigations.

The sanction order, signed by a joint secretary in the Department of Revenue, Ministry of Finance, was officially placed by the ED, paving the way for the special Prevention of Money Laundering Act (PMLA) court to take cognizance of the agency’s supplementary chargesheets. This step is mandatory under Section 19 of the PMLA for any court to proceed with a trial against a public servant. The move marks a pivotal moment in the legal proceedings involving the senior political figure.

Details of the Cases:

  • Aircel-Maxis Deal Case:

    • Allegation: The ED alleges irregularities in the Foreign Investment Promotion Board (FIPB) approval granted in 2006 for the Aircel-Maxis deal. During his tenure as Finance Minister, Mr. Chidambaram is accused by the ED of exceeding his authority by approving a foreign investment of Rs 3,500 crore.
    • Legal Threshold: Under existing rules at the time, only the Cabinet Committee on Economic Affairs (CCEA) was empowered to clear foreign investment proposals exceeding Rs 600 crore. The ED claims Mr. Chidambaram bypassed this protocol.
    • Co-accused: His son, Karti Chidambaram, is also implicated in the investigation, facing allegations of receiving illegal gratification in exchange for facilitating the approval.
    • Status: Both the ED and the Central Bureau of Investigation (CBI) have filed chargesheets in this matter, detailing allegations of money laundering and corruption.

  • INX Media Case:

    • Allegation: The ED's case in the INX Media matter pertains to alleged illegal FIPB clearance granted to INX Media for a foreign investment of Rs 305 crore in 2007. The agency claims Mr. Chidambaram, through his son Karti, facilitated this clearance in exchange for alleged payments.
    • Origin: The CBI initially registered a First Information Report (FIR) in May 2017, alleging irregularities in the FIPB clearance, which was subsequently followed by the ED registering a money laundering case.
    • Co-accused: Karti Chidambaram and several associated companies are also named as accused in this ongoing investigation.
    • Past Proceedings: P. Chidambaram was arrested by the CBI in August 2019 and later by the ED in October 2019 in connection with this case, spending a period in judicial custody before being granted bail by the Supreme Court.

The granting of prosecution sanction by the Ministry of Finance signifies that the government has found sufficient grounds for the ED to pursue criminal charges against Mr. Chidambaram in both PMLA cases. While Mr. Chidambaram and his son have consistently denied any wrongdoing, asserting that all necessary approvals were granted in strict accordance with established procedures, this development enables the legal process to advance to the next critical stage. The special PMLA court is now expected to proceed with taking cognizance of the ED's chargesheets, potentially framing charges, and moving towards the commencement of trials in these high-profile cases.