The Enforcement Directorate (ED) has secured mandatory prosecution sanction against Congress veteran P Chidambaram in the INX Media and Aircel-Maxis money-laundering cases, removing a key legal hurdle and clearing the way for expedited trial proceedings.
Both cases relate to alleged financial irregularities during Chidambaram’s tenure as the Union Finance Minister. He and the co-accused have denied wrongdoing.
The agency informed the Rouse Avenue Court that the competent authority granted approval on February 10, as required under the Prevention of Money Laundering Act (PMLA) following a recent Supreme Court ruling mandating sanction before prosecuting public servants.
In November 2024, the Supreme Court held that prior sanction is compulsory even in PMLA prosecutions involving public officials. The ruling triggered challenges in multiple ongoing cases, including those against Chidambaram, slowing proceedings.
With fresh sanctions now formally placed before the trial court in both matters, objections on procedural grounds are unlikely to stall the cases further.
The ED has indicated it will seek fast-tracked hearings.
In the INX Media matter, investigators allege that during his tenure as finance minister, Chidambaram approved Foreign Investment Promotion Board (FIPB) clearance to INX Media in exchange for illegal gratification routed through firms linked to his son Karti Chidambaram.
The ED claims about Rs 65.88 crore constitutes proceeds of crime, allegedly layered through shell entities such as Advantage Strategic Consulting and invested in assets in India and abroad. \
Assets worth over Rs 65 crore have been attached in phases since 2018. The prosecution complaint was filed in 2020, with cognisance taken in 2021 and a supplementary complaint filed in December 2024.
In the Aircel-Maxis deal, the ED alleges that in 2006, FIPB clearance for foreign investment of Rs 3,565 crore was granted despite requiring Cabinet-level approval. Investigators claim Rs 1.16 crore in illegal gratification flowed to companies linked to Karti Chidambaram.
The prosecution complaint in this case dates to 2018, with cognisance taken in 2021. The fresh sanction now removes legal uncertainty arising from the Supreme Court’s 2024 ruling.
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