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INX Media Case: All You Need to Know

Why in News?
Amid high tension drama and a chain of events, former Finance minister P. Chidambaram was arrested by the officials of Central Bureau Of investigation (CBI) in relation to the INX Media Case.

About the Case

  • The INX Media back in 2007 was allowed to receive inflows tuning to 4.62 crores by the Foreign Investment Portfolio Board (FIPB).
  • However, the company made downstream investment in another company i.e. INX News and received up to 300 crores through premium shares without the prior approval of the FIPB.
  • Downstream Investment is the indirect foreign investment by one Indian Company to another by way subscription or acquisition of shares. As such investment requires separate clearance from FIPB, it seems to be clear case of violation of FIPB norms.
  • Anticipating a FIPB enquiry to commence soon, the company had sought the help of Mr. Karti Chidambaram the son of the then finance minister Mr. P. Chidambaram.
  • Karti is alleged to have taken $ 1 Million to influence the probe using his connections in the finance ministry.

How the case did came to the fore?

  • Indrani Mukherjee is the former director of INX media facing prosecution along with her husband Peter Mukherjee in the Sheena Bora murder case.
  • In one of her statements to CBI she had claimed that her company had bribed Mr. Karti to quash the possible FIPB probe. This statement was also recorded before a magistrate, which hence becomes admissible to as evidence to prosecute Mr. Karti.
  • Subsequently Mr. Karti was arrested by CBI in 2017 and produced in the court. But he is out now on bail. CBI has sought to seek extension of Mr. Karti’s custody.

What future holds for the case?

  • Although the allegations requires a thorough and serious investigation, but whether the custody of Mr. Karti is needed or not is debatable.
  • Considering the sequence of events, the evidences are completely documentary and a possibility of rigging cannot be ruled out. The allegations against Mr. Karti will hold significance only if the CBI manages to gather specific evidences against Karti.
  • Failure to do so will provide greater significance to those elements who have claimed the case to the politically motivated.

SOURCE: The Hindu

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