ED Chargesheet: P. Chidambaram Granted Fraudulent FIPB Approval for Kickbacks

In a massive legal escalation today, the Enforcement Directorate (ED) has detailed explosive findings in its latest chargesheet against former Finance Minister P. Chidambaram and his son, Karti Chidambaram, in the long-running Aircel-Maxis corruption probe.

The central agency has accused the former minister of fraudulently bypassing constitutional protocols to grant a USD 800 million (approx. ₹3,560 crore) Foreign Direct Investment (FDI) approval to Global Communication Services Holdings Limited, a subsidiary of the Malaysian telecom giant Maxis.

According to the FDI policy in 2006, as Finance Minister, P. Chidambaram was only authorized to approve foreign investments up to ₹600 crore. Any proposal exceeding this threshold required the mandatory clearance of the Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister. The ED alleges that Chidambaram, acting in a "fraudulent and dishonest" manner, deliberately projected the investment at a lower value to keep it within his personal competence, thereby avoiding the rigorous scrutiny of the CCEA.

The investigation has further unearthed a direct "kickback" trail linking this official act to the Chidambaram family. The ED asserts that Karti Chidambaram received illegal gratification totaling ₹1.16 crore through two shell entities: M/s Advantage Strategic Consulting Pvt. Ltd. (ASCPL) and Chess Management Services Pvt. Ltd. These funds were reportedly disguised as legitimate business transactions, such as "software consultancy fees," for services the agency claims were never rendered.

Critically, the chargesheet establishes a "financial linkage" between the father and son, claiming that funds from these companies were ultimately utilized "for and on behalf of P. Chidambaram." This latest filing is a breakthrough because it coincides with the government finally providing the mandatory "prosecution sanction" required to move against a former public servant. With these legal hurdles cleared, the case, which has seen numerous stays and delays, is now poised to move into a full-scale criminal trial.

Alleged Financial Trail and Prosecution Sanction

According to the chargesheet, the agency has traced alleged proceeds of crime amounting to ₹1.16 crore to companies linked to Karti Chidambaram, Advantage Strategic Consulting Pvt. Ltd. (ASCPL), and Chess Management Services Pvt. Ltd. The ED claims these payments were shown as consultancy or service fees but were not backed by genuine business activity.

The agency further alleges a financial linkage between the entities and the former minister, claiming that certain funds were ultimately utilised “for and on behalf of” P. Chidambaram. Both P. Chidambaram and Karti Chidambaram have consistently denied wrongdoing in the case and have maintained that the approvals were lawful and in line with policy.

The latest chargesheet follows the grant of prosecution sanction by the competent authority, a mandatory legal requirement to prosecute a former public servant for acts performed in an official capacity. With this procedural step completed, the matter is expected to proceed toward trial, subject to court proceedings.

The Aircel-Maxis probe has been under investigation by both the ED and the Central Bureau of Investigation (CBI) for over a decade, witnessing multiple rounds of legal challenges, bail hearings, and interim stays in various courts.

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