Chidambaram said that the proceedings were initiated to "cause political embarrassment to me, and besmirch my reputation."

ED case against Karti filed to malign me Chidambaram files affidavit in Madras HCFile photo: PTI
news News Thursday, December 01, 2016 - 08:51

Former Union Finance Minister P Chidambaram on Wednesday filed an affidavit in the Madras High Court, alleging that the case filed against his son Karti Chidambaram was politically motivated.

"I regret to submit that the proceedings initiated against the petitioners have been undertaken in order to cause political embarrassment to me, and besmirch my reputation and the reputation of the members of my family," Chidambaram said in the affidavit, a copy of which is with TNM.

According to reports, lengthy arguments were made before Justice B Rajendran, who reserved his orders.

It has been alleged that Karti made huge profits during the sale of Aircel telecom company and misused his father’s position at the time, as Finance minister, for undue gains. 

The Enforcement Directorate, which was probing a financial transaction between Aircel and Ausbridge Holding and Investments Pvt Ltd, had issued summons to two directors from the company earlier this year.

In 2005, Malaysian company Maxis wanted to buy 74% stake for Rs 4,000 crore in telecom company Aircel, which was on the verge of bankruptcy.

According to Subramaniam Swamy and the BJP, Chidambaram delayed the deal by not giving approval from the Foreign Investment Promotion Board (FIPB).

"But this permission - Chidambaram delayed it because he wanted a cut - this is my allegation," Swamy said at a press conference in 2012.

Ausbridge Holding and Investments Pvt Ltd, a company in which Karti Chidambaram is a 94% equity holder, reportedly bought shares in Aircel’s holding company, Advantage Strategic Consultancy Pvt Ltd just before the approval was given. According to Swamy, these shares were bought at less than book value, allowing Karti to make a huge profit.

In the latest affidavit, Chidambaram also stated that "the finance minister had granted approval in the ordinary course of government business."

 

 

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