INX Media Case

What is the issue?

CBI has arrested a former Finance Minister’s son in a case involving INX Media for violation of FIPB conditions in 2007.

What is the case?

The Foreign Investment Promotion Board (FIPB) had cleared the inflow of Rs. 4.62 crores to INX Media in 2007.
However, the company made a downstream investment in another company, INX News, which received Rs. 300 crores through premium shares.
As such downstream investment required separate clearance from the FIPB, there seems to be a clear case of violation.
As an FIPB inquiry against INX Media was expected to commence, the company is said to have sought Mr. Karti Chidambaram’s help.
Mr. Karti is alleged to have taken a $1 million to influence the probe against the media house by using his connections in the finance ministry.

How did the case get exposed?

Indirani Mukerjea was the former director of the INX Media.
She is currently facing CBI prosecution along with her husband Peter Mukerjea for the murder of her daughter Sheena Bora.
In one of her statements to the CBI, she is said to have claimed that the company had bribed Mr. Karti, to quash the possible FIPB probe.
Ms. Indirani’s statement also got recorded before a magistrate, which hence becomes admissible as evidence to prosecute Mr. Karti.
An FIR was then registered in May 2017 against Mr. Karti, his previous company “Chess Management Services” and another alleged collaborator firm.
Consequently, Mr. Karti was recently arrested by the CBI in Chennai and was produced in front of a metropolitan magistrate in Delhi.
While the agency is thought to be seeking extension of custody, Mr. Karti has stated that the charges against him are politically motivated.

How does the future course look?

While the allegations are serious and deserves a thorough probe, whether securing Mr. Karti’s custody is needed is debatable.
Notably, there also seems to be no apprehension of Mr. Karti fleeing abroad to escape prosecution.
Additionally, considering the case outlay, the evidence seems to be largely documentary in nature – making evidence tampering a remote possibility.
The case against Mr. Karti will add up to something only if CBI is able to furnish specific details to establish his involvement in the conspiracy.
Failure to do so will hence give greater credibility to those who dismiss the case against Mr. Karti as political vendetta.

Source: The Hindu