CBI Files Fresh Corruption Case Against Karti Chidambaram

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 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.

The case, the 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, and 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.

In April 2005, the India Tourism Development Corporation (ITDC), which had a monopoly over the sale of imported duty-free liquor in India, put an embargo on the sale of Diageo's duty-free products in India.

The move came as a big jolt to revenues of the company as 70 per cent of its business in India pertained to the sale of Johnnie Walker whisky, the agency alleged.

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).

Dwarakanathan sold half of the shares to ASCPL at Rs 100 per share the next day on October 29, 2008, the FIR alleged.

The agency alleged that the account of ASCPL does not reflect any entry regarding the payment of Rs 1.50 crore to Dwarkanathan for the purchase of shares.

Two years later on October 26, 2010, ASCPL allegedly sold 30,000 shares out of a total of 1.5 lakh shares to a sister concern of Sequoia, namely, Sequoia Capital India Growth Investment Mauritius at Rs. 7,500 per share amounting to Rs. 22.50 crores, the FIR said.

The same day CMD of Vasan Health Arun (since deceased) also sold 52,133 shares to Sequoia Capital India Growth Investment Mauritius at Rs. 7,500 per share amounting to Rs 39.09 crore and 33,600 shares to Sequoia Capital India Growth Investment-II Mauritius at Rs 7,500 per share, amounting to Rs 25.20 crore, the FIR alleged.

Dwarkanathan also received Rs 1 crore from ASCPL on October 27, 2010, which also does not reflect in the accounts of ASCPL, the CBI alleged.

"Enquiry has revealed that the share transactions at exorbitant price is not in the ordinary course of business but is a part of the conspiracy to benefit Karti P Chidambaram who could influence the public servants," the FIR alleged.