Karti had alleged irregularities in Foreign Investment Promotion Board (FIPB) clearance to INX Media for receiving overseas funds to the tune of Rs 305 crore in 2007 when his father P Chidambaram was finance minister
The CBI on Friday justified in the Supreme Court the issuance of lookout circulars (LOCs) against Karti Chidambaram, son of senior Congress leader and former Union Minister P Chidambaram, in an alleged graft case saying there were "good, cogent" reasons to back its step.
The FIR, lodged by the CBI on May 15, had alleged irregularities in Foreign Investment Promotion Board (FIPB) clearance to INX Media for receiving overseas funds to the tune of Rs 305 crore in 2007 when Karti's father was the Finance Minister.
A bench headed by Chief Justice Dipak Misra also took on record the documents placed by the CBI in a sealed cover in connection with the case and allowed it to furnish other documentary proof about Karti's alleged foreign accounts and properties abroad.
The bench, also comprising Justices A M Khanwilkar and D Y Chandrachud, asked the CBI to respond to the affidavit filed by Karti in connection with his questioning by investigators before whom he had appeared on August 23 and 28.
Additional Solicitor General (ASG) Tushar Mehta told the bench that there was "a good, cogent reason for issuance of lookout circular against him (Karti). It is not a simple case or that of one company but it involves jugglery of accounts and properties abroad".
Appearing for Karti, senior advocate Gopal Subramaniam submitted: "What is the subject matter of enquiry is not me but my father who happened to be the finance minister giving FIPB approvals to a company in 2007 and it is alleged that one of the conditions had been violated".
He said that not a single person of the six-member FIPB, who were secretary-level officers, were examined in the case.
During the brief hearing, Subramaniam said it was alleged that Karti had bank accounts at offshore destinations and "properties all over the Universe".
"However, no questions were asked on these," he said.
The court also asked the CBI to file a rejoinder to the affidavit filed by Karti on his questioning and fixed the matter for hearing on September 11.
The apex court also did not allow the plea of senior advocate Raju Ramchandran, representing co-accused Ravi Vishwanathan, that his client be allowed to travel abroad for the admission of his son.
On August 18, the court had asked Karti to appear before the investigating officer at the CBI headquarters here for questioning in the case.
The bench had given the probe agency the liberty to question Karti as many times it wanted and posted the CBI's plea, challenging the Madras High Court order staying the LOCs issued against him and others, for further hearing today.
Prior to this, the apex court had said that Karti would not be allowed to leave India without subjecting himself to investigation in the case. The court had then stayed the Madras High Court order putting on hold the LOC issued by the Centre against Karti.
The CBI had claimed that the FDI proposal of the media house, cleared by Chidambaram, was "fallacious".
The FIR was registered on May 15 before the special CBI judge here and the registration of the case was followed by searches at the residences and offices of Karti and his friends on May 16.
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