[dropcap color=”#008040″ boxed=”yes” boxed_radius=”8px” class=”” id=””]T[/dropcap]he Law has started catching up with former Finance Minister Chidambaram and son Karti. On Monday the Enforcement Directorate (ED) slapped a Foreign Exchange Maintenance Act (FEMA) notice of Rs. 2262 crores ($350 million) on Vasan Health Care and its shareholder Advantage Strategic Consulting Pvt Ltd, controlled by Karti of Rs.45 crores ($7 million). ED has summoned all company Directors including Karti Chidambaram. ED in its notice while detailing the illegalities termed Karti as the controller and beneficiary of Advantage and the deals connected.
Vasan Health Care is considered as a company that enjoyed spectacular growth in eye care and hospital services by 2008 and was believed to have got patronage by the Chidambaram family.
ED also said that they are probing the Aircel Maxis Scam and the dubious Foreign Investment Promotion Board (FIPB) approval given by Chidambaram under Prevention of Money Laundering Act (PMLA). FEMA involves fine and PMLA involves punishment of jail term between three to seven years.
ED said that violation of Foreign Exchange Management Act (FEMA) is committed by Vasan Health Care in routing money through Mauritius and Singapore in dubious ways. The sale of shares of Vasan was also through venture capital firms like the Sequoia Group. ED investigators also found that there was a total violation of share allotment at huge variations to Karti controlled Advantage.
Vasan Health Care is considered as a company that enjoyed spectacular growth in eye care and hospital services by 2008 and was believed to have got patronage by the Chidambaram family. In 2013, even the then Prime Minister Manmohan Singh was brought to inaugurate a big function organized by Vasan Health Care! The shareholding of Karti’s firm in Vasan Health Care was exposed after the Aircel-Maxis scam and role of Karti’s firm Advantage.
“The total amount of contravention identified on different counts and found to have been committed by M/s Advantage Strategic Consulting Private Limited in the sale transaction of shares of Vasan to overseas investors is around Rs.45 crores. Show Cause Notice has been issued to M/s Advantage Strategic Consulting Private Limited, its Directors and also to Karti P Chidambaram who appears to be the controller and ultimate beneficiary in these transactions.”
“Further investigations under PMLA are going on in respect of FIPB approaval given to Aircel-Maxis by the then Finance Minister wherein foreign inflow was Rs.3500 crores ($543 million) approx whereas as per Government policy and FIPB guidelines competent authority was CCEA (Cabinet Committee of Economic Affairs) for any inflow above Rs.600 crores ($93 million),” said ED.
ED had already summoned Karti for two lakh dollar ($200,000) kickbacks from Maxis. Till date he has not appeared. This is the new summons under FEMA. Will ED arrest Karti for not appearing this time?
1. The conversion rate used in this article is 1 USD = 64.48 Rupees.
2. Text in Blue points to additional data on the topic.
- Andhra Pradesh Government Orders Tirupati temple trust to stop the auction of 50 properties, considering the sentiments of devotees - May 25, 2020
- TTD (Tirupati) to sell 50 unviable land and immovable properties through public auction - May 24, 2020
- Ram Mandir was visible in plain sight! - May 24, 2020