Chidambaram approached the High Court to challenge the trial court’s decision to take cognizance of the complaint filed by the ED against him and his son, Karti Chidambaram, in the Aircel-Maxis case.
![[Aircel-Maxis Case] Delhi HC Stays Proceedings Against Former Union Minister P. Chidambaram](https://i0.wp.com/lawchakra.in/wp-content/uploads/2024/11/oooo.png?resize=820%2C449&ssl=1)
NEW DELHI: The Delhi High Court on Wednesday(20th Nov) temporarily stayed the legal proceedings against Congress leader and former Union Minister P. Chidambaram in the money laundering case linked to the Aircel-Maxis deal.
Justice Manoj Kumar Ohri ruled that the proceedings against Chidambaram would remain stayed until the next hearing.
“I will issue a detailed order,” said the single-judge bench, while also issuing a notice to the Enforcement Directorate (ED).
Chidambaram approached the High Court to challenge the trial court’s decision to take cognizance of the complaint filed by the ED against him and his son, Karti Chidambaram, in the Aircel-Maxis case.
Senior Advocate N. Hariharan, representing the former Minister, argued that the cognizance could not have been taken without prior sanction for prosecution.
Advocates Arshdeep Singh and Akshat Gupta assisted Hariharan, while Advocate Zoheb Hossain appeared for the ED.
The case involves alleged irregularities in the Foreign Investment Promotion Board (FIPB) approvals granted for the Aircel-Maxis deal when Chidambaram served as the Union Finance Minister. The prosecution alleges that Chidambaram and his son Karti received kickbacks to ensure the clearance of the Rs 3,500 crore deal.
Both the CBI and ED filed chargesheets and complaints in the case in July 2018.
Notably, the Supreme Court recently ruled that the ED must also seek sanction under Section 197 of the Code of Criminal Procedure (CrPC) to prosecute public servants under the Prevention of Money Laundering Act (PMLA).
The Court held that Section 197(1) of the CrPC applies unless there is an inconsistent provision in the PMLA, which has not been pointed out.
Aircel-Maxis Case
In 2006, Maxis Communications acquired a 74% stake in Aircel, a deal worth approximately Rs 3,500 crore (around $500 million). The deal required approval from India’s Foreign Investment Promotion Board (FIPB), which was under the Ministry of Finance.
The primary allegations in the Aircel-Maxis case are related to the approval process for this deal. The Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) allege that P. Chidambaram, as the Finance Minister, played a role in clearing the FIPB application for the Aircel-Maxis deal in exchange for kickbacks. The charge is that both P. Chidambaram and his son, Karti, received financial benefits from Maxis to secure regulatory approval for the deal.
