In 2012, it was Subramanian Swamy who had alleged that Karti had misused his father’s position as Finance minister for undue gains.

Explained ED summons two directors of Karti Chidambaram linked company in Aircel Maxis case
news Monday, August 24, 2015 - 19:51

Three years after allegations first cropped up that Karti Chidambaram, son of Congress leader P Chidambaram made huge profits during the sale of Aircel telecom company, the Enforcement Directorate has issued summons to two directors from his company. The ED is probing a financial transaction between Aircel and Ausbridge Holding and Investments Pvt Ltd.

In 2012, it was Subramanian Swamy who had alleged that Karti had misused his father’s position as Finance minister for undue gains.

What Swamy had alleged:

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

According to Swamy and the BJP (which took up the matter in Parliament), Chidambaram delayed the deal by not giving the approval from the Foreign Investment Promotion Board.

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

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

Former telecom minister Dayanidhi Maran and his brother Kalanithi Maran have been accused of arm twisting Sivasankaran to sell his company to Maxis. The two are in the dock as Maxis invested Rs 600 crore in the Maran-owned company Sun Direct, which the CBI has said was quid pro quo.

What Chidambaram and Karti said:

Various media reports in 2012 quoted sources close to Karti Chidambaram saying that he bought share holdings in the company only in 2011, much after the Aircel-Maxis deal.

"I categorically state that neither me nor any member of my family have acquired or hold any stake in Aircel or Maxis. The person is known to make wild and reckless allegations. It is deeply regretted that the privileged forum of Parliament is misused to level wild and reckless allegations against a private citizen," Chidambaram said in Parliament in May 2012.

"God, forgive them for they know not what they do. I pray that God will forgive the sins of these people,” he told the Parliament.

Later, in September 2012 he said, “In the Aircel-Maxis case, the FIPB sought the approval of the Finance Minister in accordance with the rules. The case was submitted through the Additional Secretary and Secretary, DEA. Both of them recommended the case for approval. Approval was granted by me, as Finance Minister, in the normal course".