ED moves to accelerate P Chidambaram’s money laundering trial after government nod

New Delhi: The Enforcement Directorate (ED) on Thursday moved to accelerate the long-stalled money laundering trials against former Union Finance Minister P. Chidambaram, informing a special court that it has secured the mandatory government sanction required to prosecute the veteran Congress leader.

The federal agency submitted the formal authorisation to the Rouse Avenue Court in the high-profile Aircel-Maxis and INX Media cases. The move follows a November 2024 Supreme Court ruling that made such sanctions mandatory for prosecuting public servants under the Prevention of Money Laundering Act (PMLA), a requirement that had previously led to significant procedural delays.

"To counter such delay and to comply with the judgement of the Hon'ble Supreme Court, ED has swiftly initiated remedial actions by seeking prosecution sanctions," the agency said in a statement, noting it received the necessary approvals on February 10.

The Aircel-Maxis Allegations

The ED’s case, initiated in 2012, centres on a 2006 Foreign Direct Investment (FDI) proposal worth $800 million (approximately ₹3,565 crore). Investigators allege that Chidambaram, as Finance Minister, exceeded his authority to grant the approval.

• Jurisdictional Breach: The ED claims Chidambaram was only empowered to approve proposals up to ₹600 crore; larger deals required the Cabinet Committee on Economic Affairs' (CCEA) nod.
• The "Quid Pro Quo": The agency alleges that "illegal" gratification of ₹1.16 crore was funnelled to companies controlled by his son, Karti Chidambaram.
• Conspiracy: "Approval was fraudulently and dishonestly granted by the then finance minister P Chidambaram on 20.03.2006," the ED alleged, claiming funds from these entities were used "for and on behalf of" the senior Chidambaram.

The INX Media Probe

In the second case, filed in 2017, the ED alleges that FIPB approval was granted to INX Media in exchange for kickbacks. These "proceeds of crime" were reportedly routed through shell companies and layered through various health care investments and overseas properties.

The agency maintains that Karti Chidambaram and his associates acted as intermediaries, interacting with INX Media executives to facilitate the deal on behalf of his father.

Defense and Denial

Both P. Chidambaram and Karti Chidambaram, who is a sitting Member of Parliament, have consistently denied all allegations. They have characterised the decade-long investigation as a "political witch hunt" orchestrated by the BJP-led central government to silence political opposition.

With the submission of the prosecution sanction, the ED stated the "order has been placed before the Hon'ble Special Court... to expedite the trial." The court had originally taken cognisance of the charge sheets in 2021, but the proceedings had been largely frozen pending the resolution of the sanction requirement.

With inputs from PTI