INX Media : SC Issues Notice To ED On Chidambaram's Bail Plea

The Supreme Court on Wednesday issued notice to Enforcement Directorate on the petition filed by former Union Finance Minister P Chidambaram challenging the November 15 judgment of the Delhi High Court that had denied him bail in the INX media case.

The bench comprising Justice Banumathi, Bopanna and Hrishikesh Roy has posted the case next on November 26.

Senior Advocates Kapil Sibal and Dr A M Singhvi appeared for Chidambaram and submitted that he had been under custody for past 91 days.

He satisfies the triple test for grant of bail, Sibal submitted.

The High Court had observed that the allegations are serious in nature and that there was prima facie evidence to show that he had played key and active role in the case.

While dealing with the issue of triple test, Justice Suresh Kumar Kait of noted that there are no cogent grounds to believe that the Petitioner poses a flight risk or has a potential of tampering with evidence. He also noted that since the complaint is about to be filed in the present case, the question of influencing the witnesses is also ruled out.

The court also noted that the co-accused in the case, Karti Chidambaram, is already out on bail.

Despite making these observations on triple test, the court went on to dismiss bail primarily on the ground that the Petitioner is alleged with serious economic offences which should be dealt with seriously by the courts.

The court cited arguments made by SG Tushar Mehta on shell companies abroad, generation of fake invoices by the companies controlled by Karti and layering of money in bank accounts, to opine that the allegations against the Petitioner are prima facie serious, hence relief in the form of bail cannot be warranted.

While making its order, the court also highlighted that the materials and investigation conducted by the ED is different from that conducted by the CBI.

Granting bail will send a wrong message to the society; entire community would be aggrieved if such offenders are allowed to go free, observed the Court, while adding that the observations are not conclusive.

Chidambaram was arrested by the CBI on August 21 in the corruption case which was registered on May 15, 2017 alleging irregularities in a Foreign Investment Promotion Board (FIPB) clearance granted to the INX Media group for receiving overseas funds of Rs 305 crore in 2007, during Chidambaram's tenure as finance minister.

Both the CBI and Enforcement Directorate have registered separate cases against him in relation to the INX deal; the former for offences under Prevention of Corruption Act and the latter under Prevention of Money Laundering Act.

After spending 58 days in custody - 15 days CBI custody and 53 days judicial custody - the SC had granted him bail on October 22 in the case registered by CBI. The SC rejected the argument of CBI that Chidambaram posed a flight risk and that he could influence witnesses.

However, he could not get release from Tihar jail even after the SC relief as he was taken into custody by the ED on October 17.

On October 18, the CBI had submitted charge sheet against Chidambaram, his son Karti, former INX Media head Peter Mukherjee and eleven others for offences of cheating, forgery and criminal conspiracy under Sections 120B, 420, 468, 471 of Indian Penal Code and offences under Sections 9 and 13(1) (d) of Prevention of Corruption Act.