Aircel-Maxis case: ED seeks to cancel Karti Chidambaram's interim protection from arrest. Full details here

Update at 10:49 AM: ED seeks custodial interrogation of Karti Chidambaram and says that he hasn't been cooperating - which was one of the conditions imposed on him while granting interim bail. 

As per the ED, Karti has shown "irritation" and sometimes even "anger" during interrogation and that he has been giving "tailor made responses" to their questions. The ED alleges that he is trying to derail the investigation. 

The Enforcement Directorate (ED) on Monday moved a special CBI court seeking the cancellation of Karti Chidambaram's interim protection in the Aircel-Maxis case. 

It was in August that a Delhi court had extended the interim protection from arrest granted to Karti and his father, former Finance Minister P Chidambaram, till October 8.

The ED's move comes days after sources confirmed to Republic TV that the agency would be filing another chargesheet in the case and that P Chidambaram is likely to be named as an accused. Sources had also added that the ED had come across a financial trail of over Rs 50 lakh which was allegedly paid to the senior Congress leader's aides.

Inputs on the ED filing a chargesheet come less than two months after the CBI filed its chargesheet in the Aircel-Maxis case, naming both Chidambarams and ten others.

The Aircel Maxis case

The Aircel-Maxis case, which arose from the 2G spectrum allocation scam, pertains to FIPB clearances being given to Malaysian firm Maxis Communications for investment in the erstwhile India-based telecommunications company Aircel during the time that P Chidambaram was Finance Minister. 

The ED had earlier said that the FIPB approval granted in 2006 by Chidambaram was beyond his mandate as he was only authorised to accord approval on project proposals up to Rs 600 crore.

P Chidambaram and FIPB's alleged involvement

The deal to acquire Aircel entailed a foreign investment, which, as per the extant norms required clearance from the (now defunct) Foreign Investment Promotion Board (FIPB). The FIPB at that time reported to the Union Finance Minister, i.e. P Chidambaram. However, the Finance Minister at that time was only competent to give sanction up to Rs 600 crore. Anything in excess of that figure would have to be referred to the Cabinet Committee On Economic Affairs (CCEA) chaired by the Prime Minister.

At that time, Chidambaram had said that the Aircel-Maxis deal file had been put up before him by FIPB officials and he had approved it "in the normal course". 

“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”, Chidambaram had said in a statement.

The ED (which had named Karti Chidambaram as an accused in its chargesheet) has since said that its probe has revealed that the case of the said foreign direct investment was “wrongly projected as an investment of ₹180 crore so that it need not be sent to the CCEA to avoid a detailed scrutiny”. Karti had been arrested on February 28 at the Chennai airport upon his return from the United Kingdom, for his alleged role in the case.