Is there a tax loophole that the ex-Finance Minister devised that he himself is taking advantage of? The 200 page Income Tax (IT) report shows that the former Finance Minister P Chidambaram has engaged in a funny deal with his wife Nalini and son Karti. As per the agreements seized in the joint raid of Income Tax and the Enforcement Directorate (ED), there appears to be an inspired scheme to fool the taxman through bogus agreements.
What is the ring of fire that prevents the current government from acting?
After getting out of power in mid 2014, Chidambaram who claims to be a resident in Delhi’s Gymkhana Club enters into curious rent agreement with Nalini and Karti living in Chennai. As per the agreement Nalini and Karti own a floor of a multi-storeyed building having the address 115A at posh Jor Bagh in Delhi. These two owners decided to rent one of the floors to Chidambaram for Rs.2 lakhs ($3000) per month.
In the documents unearthed, it is shown that this one floor Jor Bagh apartment lists for an official price of around Rs.30 crores ($4.6 million). Some documents show that still the mutation process is pending and that this purchase happened after the United Progressive Alliance (UPA) lost power. These documents were seized in the joint raid by IT and ED at Karti’s companies in connection with the Aircel-Maxis money trail.
So what is unusual about this rent agreement from Chidambaram, who never tired of preaching others to be transparent in financial matters? Why does he declare himself as a resident of Gymkhana Club in Delhi? Nalini and Karti have show their original address at 16-Pycrofts Garden in Chennai, which is also supposed to be Chidambaram’s address. Then why did Chidambaram show his address as a resident in Gymkhana Club in Delhi? Is he separated from his family? If so, is that fact reflected in his filings? Above all is this sheer accounting jugglery acceptable from a man, who prepared at least nine Budgets? So are all the rules laid down merely guidelines for the salaried class? To quote Orwell, all are equal but some are more equal?
There is more. Chidambaram became a Member of Parliament (Rajya Sabha) in May 2016 and must have got official accommodation by now. Is he still paying Rs.2 lakhs/ month as rent to his wife and only son?
The picture (see graphic above) shows that the building is a four storied structure. We are curious as to who owns the rest of the building. The Income Tax report exposed how Chidambaram family manages Benamis by making them sign a WILL assigning all their assets to Karti’s daughter out of their love for Chidambaram. Does the PC family own just only the one floor? Who owns the other three?
The Rs.10 crore (AKA Million rupees) question (KBC) is when will IT, CBI and ED move? What is the ring of fire that prevents the current government from acting?
1. The conversion rate used in this article is 1 USD = 65.43 Rupees.
2. Text in Blue points to additional data on the topic.