Background (2007-09)

• The INX Media case refers to an ongoing high-profile money laundering investigation in India. It involves

allegation of irregularities in foreign exchange clearances given to INX Media group for receiving overseas
investment in 2007.

• INX Media, founded by media entrepreneurs Indrani Mukerjea along with husband Peter Mukerjea in

2007, allegedly violated foreign investment laws.

• INX Media had permission to source foreign investments to the tune of ₹4.62 crore (US$650,000) but it
has allegedly received funds worth ₹305 crore (US$43 million) by issuing shares to foreign investors at a
premium of more than Rs 800 per share.

• In March 2007, INX Media had approached the Chairman of Foreign Investment Promotion
Board (FIPB), for permission for foreign direct investment (FDI) from three non-resident Mauritius-
based companies namely New Vernon Private Equity Limited, New Silk Route (NSR) PE Mauritius,
Dunearn Investment for operating a number of television channels under the banner of INX Media.

• The application to the FIPB mentioned its intention to "make a downstream financial investment to the
extent of 26 per cent of the issued and outstanding equity share capital of INX News Private Limited”.

• The FIPB approved the proposal for FDI inflow which should not go beyond 46.20 percent of shareholding
in INX media, but did not approve the downstream investment.
• According to the CBI, the company "deliberately and in violations of the conditions and approval", carried out the
downstream investment.

• When the Income Tax Department sought clarifications on the matter in February 2008, INX Media allegedly
sought to evade the investigation by approaching Karti Chidambaram to leverage his family name by offering
kickbacks to the tune of ₹10 lakh (US$14,000) for his assistance, via his consulting firm Advantage Strategic
Consulting Ltd.

• In 2009, Peter and Indrani Mukerjea exited INX Media by selling their 30% share in the company. The company
was subsequently renamed 9X Media.

ED’s Filing & Investigations (2010-15)

• In 2010, the Enforcement Directorate registered a case under Foreign Exchange Management Act (FEMA)

for diverting foreign direct investment by three Mauritius-based companies in INX Media to its subsidiaries
without prior approval of the FIPB.

• In 2013, the investigation was halted without explanation.

• In May 2014, the investigative wing of the Central Board of Direct Taxes compiled a tax history of the INX
Group and suggested that the Mukerjeas had laundered Rs. 275.5 crore (Rs. 2.755 billion) via Mauritius into
eight INX Group subsidiary companies between 2007 and 2008.

• In September 2015, the Mumbai office of the Enforcement Directorate indicated that it would reopen the 2010
FEMA case under the Prevention of Money Laundering Act, 2002.
Investigations

2017

• The ED in May 2017 had lodged an Enforcement Case Information Report (ECIR) - a police FIR
equivalent - against Chidambaram's son Karti Chidambaram, INX Media and its directors, Peter
and Indrani Mukerjea, along with a couple of others under the provisions of the Prevention of Money
Laundering Act (PMLA).

• Based on the information provided by the ED, the CBI subsequently filed an FIR against the accused
mentioned above, alleging irregularities in the FIPB clearance granted to INX Media in 2007 for receiving
overseas funds to the tune of Rs 305 crore when Chidambaram was the finance minister.

• In June 2017, The Foreigner Regional Registration Officer and the Bureau of Immigration, which
comes under the Union Home Ministry, issued a look out circular (LOC) against Karti Chidambaram.

• On 10 August 2017, Madras High Court stayed the LOCs issued against Karti Chidambaram and four
others but it was stayed by Supreme Court of India on 14 August 2017.

• In October 2017, P Chidambaram conveyed to the Supreme Court of India that the case is a "politically-
motivated vendetta" against him and his son. The Chidambarams have predictably and vociferously
denied all charges made against them.
Investigations

2018

• Indrani Mukerjea and her husband Peter Mukerjea had been charged with entering into a criminal
conspiracy with Chidambaram and son Karti to get foreign investments and evade punitive measures for
not having the necessary approvals from the FIPB.

• Karti Chidambaram's chartered accountant, S. Bhaskararaman, was arrested for allegedly assisting him
to manage his wealth in India and abroad in February 2018.

• In the same month, Karti Chidambaram was arrested by CBI at Chennai Airport and was brought to Delhi.
He received bail after spending 23 days in jail.

• In March 2018, Indrani Mukerjea told the CBI in a statement that a $1-million deal had been struck
between Karti Chidambaram and the Mukerjeas to secure FIPB approval in favour of INX Media.

• In October 2018, the Enforcement Directorate (ED) seized assets of Karti Chidambaram worth Rs 54
crore, including properties in New Delhi, Ooty, UK and Barcelona.

• A Delhi court had allowed Indrani Mukerjea to turn approver in the INX case. In her application to turn
approver, Mukerjea had prayed for pardon in the case in exchange of full and true disclosure.
Investigations

2019

• In August 2019, the CBI and ED issued a notice to P. Chidambaram to appear before them.

• On 21 August, it was reported that P. Chidambaram went missing after his anticipatory bail plea was
refused on same day.

• He appeared around 24 hours later at the Congress Party headquarters and made a statement to the
press that he has "not committed any offence in INX Media case" and "will respect the law”.

• His plea for an anticipatory bail in INX Media case was dismissed by the Delhi High Court on 20 August
2019.

• The CBI arrested him at his house the next day, in a sequence of events described as "dramatic" by the
media.

• After being denied entry at the main gate of his house, some CBI agents reportedly entered the
compound through the back gate and others by scaling the walls. Eventually they were allowed into the
house and the arrest was carried out.
Supreme Court’s Verdict

• On 5 September 2019, P. Chidambaram was sent to Tihar Jail for a two-week judicial custody and on 3
October 2019, he was again sent to jail up to 17 October after his bail was rejected.

• On 22 October 2019, Supreme Court granted bail to P. Chidambaram against the case registered by
the CBI.

• However, he was not released because by the time he was given bail, the ED had arrested him for further
investigation in the case.

• Chidambaram was given bail on 4 December 2019, after 105 days of custody in Tihar Jail. The Supreme
Court has barred him from speaking to the press.

• On 20 January 2020, Special Judge Ajay Kumar Kuhar in Supreme Court also granted bail to finance
minister Pradeep Kumar Bagga and former FIPB director Prabodh Saxena who were also involved in
the case.

• The court, which granted them bail on a surety of Rs 2 lakh each, directed that they would not leave the
country without its permission. It also directed them not to tamper with evidence.