P Chidambaram
- PC : mrp
From the past few days, you must have heard a lot about the INX Media case. Let’s Know what is INX Media & Why is it in the headlines these days and what P Chidambaram has to do with it?
INX Media case
The INX Media case is in the top news these days because of the involvement of the senior Congress leader P Chidambaram and his son Karti Chidambaram in it.
As per the FIR alleged by the Central Bureau of Investigation (CBI) on May 15, 2017, irregularities have been found in the Foreign Investment Promotion Board (FIPB) clearance given to INX Media for receiving funds from abroad amounting Rs 305 crores in 2007.
The CBI reports say,
-In March 2007, INX Media had approached the chairman of the Foreign Investment Promotion Board (FIPB)
- INX Media WAS seeking approval for issuing equity shares to three non-resident investors based in Mauritius through the Foreign Direct Investment (FDI).
- The FIPB approval CAME after 2 months, permitting INX Media to receive foreign funds amounting to Rs 4.62 crore
- While FIPB rejected company's another request which was for a downstream investment of foreign funds in its subsidiary INX News Pvt Ltd.
- On May 15, 2017, the CBI alleged irregularities have been found in the Foreign Investment Promotion Board (FIPB) clearance given to INX Media.
- The company brought in an FDI investment of around Rs 305 crore against an approved amount of Rs 4.62 crore.
CBI filed the case that the company, its directors and other parties deliberately involved in the violations of the conditions and approval.
According to the plea filed by CBI, shares were issued to foreign investors at a premium of more than Rs 800 per share between August 2007 and May 2008. The foreign firms allegedly bought each share for Rs 862.31, a price that was more than 86 times more than the face value of the shares.
Enforcement Directorate (ED) registered a case of money laundering against INX Media and related parties in 2018 for alleged Foreign Exchange Management Act (FEMA) violations.
Why is it in the headlines these days?
The Delhi High Court said on Tuesday that the INX media case was a "classic case of money laundering" and it was of the prima facie opinion that his custodial interrogation is required for an effective investigation in the matter.
Further, Court refused to grant him anticipatory bail, saying he seems to be the "kingpin" and "key conspirator" in the INX media case.
The money laundering scam happened when the senior Congress leader was the finance minister of India. Therefore, CBI issued arrest warrants after convicting them.
