INX Media Case: Former Finance Minister to remain in Judicial Custody for 14 day
The mighty have fallen the former Finance Minister P. Chidambaram go to Tihar Jail in the INX Media Case. The news had trickled from the CBI Special Court on 5th of September, 2019. After arguing for 5 day in the court, not to go to the enforcement directorate custody meant it clearly that Chidambaram did not want to go to the custody. The judicial custody means that Chidambaram have to go to Tihar Jail which he wanted to avoid. But 14 day judicial custody was awarded to him by the court. Fourteen day Judicial Custody means the former Finance Minister and Home Minister have to cool his heel in the Tihar Jail. The court directed him to be kept in a separate cell as he was the protectee under Z security. He was kept in one of the cell in Jail No. 7.
What is the Matter?
INX Media, founded by media entrepreneurs Indrani Mukerjea along with husband Peter Mukerjea, allegedly violated foreign investment laws. INX Media had permission to source foreign investments to the tune of ₹4.62 crore (US$670,000) but it has allegedly received funds worth ₹305 crore (US$44 million)[i]
The FIPB approved the proposal for FDI inflow of Rs. 4.62 crore, but did not approve the downstream investment. However, according to the CBI, the company “deliberately and in violations of the conditions and approval”, carried out the downstream investment. Moreover, it generated FDI exceeding Rs. 305 crore “by issuing shares to foreign investors at a premium of more than Rs 800 per share”.[ii]
When the Income Tax Department sought clarifications on the matter in February 2008, INX Media allegedly sought to evade the investigation by approaching Karti Chidambaram to leverage his family name. The CBI alleged that Karti Chidambaram received kickbacks to the tune of ₹10 lakh (US$14,000) for his assistance, via his consulting firm Advantage Strategic Consulting Ltd.
In 2009, Peter and Indrani Mukerjea exited INX Media by selling their 30% share in the company, which was making losses by this time. The company was subsequently renamed 9X Media.[iii]
Court Rejected Anticipatory Bail
Calling economic offences “serious”, court said anticipatory bail has to be an exception in such cases. “The right to anticipatory bail can’t be a subject matter of fundamental right under Article 32,” the SC added.
“This is not a fit case for grant of anticipatory bail. Investigating agency has to be given enough freedom to probe. Grant of anticipatory bail at this stage will hamper the investigation. Accused may move regular bail before the appropriate court,” the court said.[iv]
Report By-
Sakshee Sahay
Student Member,
Indian National Bar Association
[i] “Infographic: What is P Chidambaram’s role in INX Media case?”. India Today. Delhi. 22 August 2019. Retrieved 2019-08-23.
[ii] “What is INX Media case; a look at the genesis of P Chidambaram and son Karti’s misfortunes”. Business Today. 21 August 2019.
[iii] Shrimi Choudhary (17 Sep 2015). “Sheena Bora murder: ED may reopen probe into Mukerjeas’ money dealings”. Daily News and Analysis. Retrieved 6 Feb 2016.
[iv] https://www.news18.com/news/india/setback-to-p-chidambaram-as-sc-refuses-anticipatory-bail-in-eds-inx-media-case-2297643.html