CBI books Karti Chidambaram in fresh corruption case

The case pertains to the alleged suspicious payment made to Advantage Strategic Consulting Pvt. Ltd (ASCPL), an entity controlled by Karti P Chidambaram and his close aide S Bhaskararaman by Diageo Scotland and Sequoia Capitals

New Delhi: The CBI has registered a fresh case of corruption against Karti Chidambaram, former Finance Minister P Chidambaram’s son and Congress MP, for allegedly giving relief to alcoholic beverage company Diageo Scotland over a ban imposed by ITDC on the duty-free sale of its whisky, officials said on Thursday.

The case pertains to the alleged suspicious payment made to Advantage Strategic Consulting Pvt. Ltd (ASCPL), “an entity controlled” by Karti P Chidambaram and his close aide S Bhaskararaman by Diageo Scotland and Sequoia Capitals, the CBI FIR said.

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The case, fourth against the Congress MP, stems from a Preliminary Enquiry registered by the CBI in 2018 to look into alleged irregularities in granting FIPB clearance when P Chidambaram was the Finance Minister. The PE was registered against Katra Holdings, ASCPL, Karti Chidambaram and others.

Karti Chidambaram is facing a probe in three other corruption cases — Aircel Maxis, Visa for Chinese employees and INX Media.

“Enquiry revealed that out of various proposals of FIPB enquired into, it was found that Diageo Scotland and Sequoia Capital have suspiciously transferred funds to Advantage Strategic Consulting Pvt. Ltd., an entity controlled by Sh Karti P Chidambaram and his close aide S Bhaskararaman,” it said.

The CBI has also named Bhaskararaman, ASCPL, Diageo Scotland, Mauritius-based Sequoia Capital, Vasan Healthcare Pvt Ltd in the case registered under IPC sections 120-B (criminal conspiracy), 420 (cheating) and provisions of the Prevention of Corruption Act.

No immediate reaction was available from Karti or the other suspects named in the FIR. The agency said that its enquiry has found that Diageo Scotland, UK used to import duty-free Johnnie Walker whisky.

The CBI FIR alleged that Diageo Scotland approached Karti Chidambaram, seeking help in lifting the ban and made payments of USD 15,000 to ASCPL which took it in the guise of “consultancy fee”. “The enquiry has revealed that USD 15,000 was paid to Karti P Chidambaram through ASCPL for influencing the public servants to lift the ban imposed on Diageo Scotland for the sale of duty-free liquor and not for any consultancy work,” the FIR alleged.

The CBI is also looking into suspicious share transactions involving Sequoia Capital and Vasan Healthcare when the former’s proposal for foreign investment in India was awaiting clearance by the Foreign Investment Promotion Board (FIPB), the FIR alleged.

The agency has alleged that through suspicious share transactions “a total of Rs 86.80 crores was paid by Sequoia to ASCPL (Rs. 7500 per share) and Arun (since deceased), the founder of Vasan Healthcare, as against actual market rate of Rs. 1.27 crore”.

The CBI has alleged that the wife of Vasan Healthcare’s founder, Meera Arun had “subscribed 5.80 lakh shares of the M/s Vasan at Rs 200 per share on October 28, 2008” from which she gifted three lakh shares to her father Dwarkanathan (since deceased).