Money Laundering – Centre Approves Prosecution of Chidambaram in Two Cases
Money Laundering – The Enforcement Directorate has informed a special court in New Delhi that the Central government has granted permission to prosecute former Union finance minister P Chidambaram in two separate money laundering cases. The agency submitted the sanction orders on Thursday and urged the court to move forward with the trial process without further delay.
Sanction Granted After Supreme Court Clarification
According to officials, the prosecution sanction in the INX Media and Aircel-Maxis matters was approved on February 10. The development follows a Supreme Court judgment delivered in November 2024, which clarified that prior sanction under Section 197(1) of the Criminal Procedure Code is mandatory before prosecuting a public servant. The ruling also made it clear that this requirement applies even to complaints filed under the Prevention of Money Laundering Act, 2002.
In light of the verdict, the Enforcement Directorate approached the Centre seeking the necessary approval to proceed against Chidambaram. With the sanction now in place, the agency has formally placed the documents before the trial court.
Background of the INX Media Investigation
The money laundering probe in the INX Media case began in 2017. It was initiated after the Central Bureau of Investigation registered a separate case alleging irregularities in foreign investment approvals involving INX Media and others. Among those named in the CBI’s complaint was Karti Chidambaram, the son of the former minister.
Investigators from the Enforcement Directorate later launched their own inquiry under the provisions of the Prevention of Money Laundering Act. The agency has alleged that during Chidambaram’s tenure as finance minister, approval from the Foreign Investment Promotion Board was granted to INX Media and subsequently regularised, despite alleged discrepancies in the investment structure. The ED claims that these approvals were linked to illegal gratification, an allegation that has been contested by the accused.
Allegations in the Aircel-Maxis Deal
The second case relates to the Aircel-Maxis transaction. The Enforcement Directorate has maintained that in this matter, Foreign Investment Promotion Board clearance was granted for foreign direct investment worth approximately $800 million by Maxis into Aircel.
According to the agency, the scale of the proposed investment exceeded the financial limits within which the finance minister was authorised to approve foreign direct investment proposals at the time. The ED contends that the approval should have been placed before the Cabinet Committee on Economic Affairs instead of being cleared at the ministerial level.
Legal Process Moves to Trial Stage
With prosecution sanction secured in both matters, the focus now shifts to the trial proceedings. The special court in New Delhi will examine the material placed on record and determine the course of the hearings. The Enforcement Directorate has requested that the cases be taken up for expeditious trial, citing the duration for which the matters have been pending.
Chidambaram has previously denied any wrongdoing in connection with both cases. The legal proceedings have seen multiple rounds of investigation, court hearings, and bail orders over the years.
The Centre’s approval marks a procedural milestone in the long-running investigations. As the cases move ahead, the court will evaluate the evidence presented by the prosecution and the defence before arriving at any conclusion.