How Indrani Mukherjea’s statement to CBI led to Chidambaram’s arrest

Indrani Mukherjea and her husband Peter Mukherjea, who owned INX Media had claimed in their statement to the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) that when they met P Chidambaram (then a finance minister) in his North Block office in 2006, he asked them to meet his son - Karti - and suggested that they help him in his business.

Indrani Mukherjea’s statement is a key evidence against P Chidambaram in the CBI and ED probes.

Follow LIVE updates on Chidambaram arrest in INX Media Case here.

She had recorded in her statement on February 17, 2018, now part of court documents, that Karti had asked them (Mukherjeas) for a bribe of $1 million when they met at Hyatt hotel in Delhi.

Also Watch | Chidambaram faces heat: All there is to know about the INX media case

They worked out a plan according to which Mukherjeas engaged Karti’s company Advantage Strategic Consulting Pvt Ltd (ASCPL). As part of the alleged quid pro quo, ASCPL and its associated companies around this time raised four invoices for $700,000 ( ₹3.10 crore) on INX Media and were reimbursed. Soon, FIPB gave its approval to fix the irregularities.

Also read: ‘Between now and Friday…’: Chidambaram after his surprise visit to Cong HQ

According to an CBI official who did not wish to be named, in March 2007, INX Media breached the condition on which it had been allowed by FIPB (foreign investment promotion board) to raise 46% equity through issue of shares. Against the permission to raise ₹4.62 crore by issuing shares at face value, the company got in ₹305 crore by issuing shares at a premium. In addition, it also bypassed FIPB to make 26% downstream investment in INX News Private Limited.

Karti was earlier arrested in the case in February 2018.

During his questioning last year, P Chidambaram was confronted with the documents of the finance ministry and Indrani’s statement but he was not cooperating, said the officer cited above.