ED slaps FEMA on Vasan Health Care & Karti’s Advantage. Summons Karti and Directors

More trouble for Karti Chidambaram and his father P Chidambaram as ED slaps a $350 million fine under FEMA

More trouble for Karti Chidambaram as ED slaps a $350 million fine on Vasan Eye care
More trouble for Karti Chidambaram as ED slaps a $350 million fine on Vasan Eye care

[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?

Note:
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.

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5 COMMENTS

  1. All influential agents of black money, used to loot this country for decades, are to be brought to book as soon as possible. The huge amounts recovered by such actions should be used to improve the pitiable condition of poor people of this country.

  2. Good work by Dr.SSwamy and other honest officers. The entire family of PC is a bunch of great looters and they have amassed wealth not only in India but also abroad. The cunning fox of Indian polity, PC, NC and KC should be sent to jail asap and all the wealth are annexed to the country.

  3. Gentlemen, please note that there is nothing to celebrate. Appreciate that the law has finally nailed the corrupt. However, until the sentence is observed, there is no need to smile. Moreover, the Chidambaram family is only one part of a huge Corrupt India we have. SHRI. Modi, to the satisfaction of others has been a terror in dreams too for these corrupt. I would admit that the total currency being printed in India is more three times the requirement. While I join you all in the celebration, more needs to be done & FAST.

  4. Law is catching up the crook family. Kudos to the honest officers not budging to the pressure by this Crook PC’s Family

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