INX Media Scam : SC Grants Interim Protection To P Chidambaram From Arrest In ED Case Till August 26 [Read Order]

(Updated with the Order)

The Supreme Court bench of Justices Bhanumati and A S Bopanna on Friday granted interim protection from arrest to former Union Finance Minister P Chidambaram in the case registered by the Enforcement Directorate in the INX Media scam till August 26.

 "...having regard to the fact that the petitioner was also granted interim protection on 25.07.2018 and that the co-accused were also granted bail by the High Court, the petitioner is granted interim protection, insofar as the Enforcement Directorate case is concerned i.e. ECIR/07/HIU/2017 till the next date of hearing (Aug 26)", ordered the bench.

The bench also posted to August 26 the petition filed by him seeking pre-arrest bail in the CBI case. This was done taking note of the fact that the CBI court had on Thursday remanded him to CBI custody till August 26. Also, the bench considered the fact that Chidambaram was earlier granted interim protection by the High Court.

(In the INX Media scam, the ED has registered a case the Prevention of Money Laundering Act. The CBI has arrested Chidambaram in the case registered for offence under Prevention of Corruption Act and Indian Penal Code in respect of INX FDI transaction).

Solicitor General Tushar Mehta submitted that the application for anticipatory bail was no longer maintainable after Chidambaram was remanded to CBI custody.

While the bench adjourned the bail plea in respect of the CBI case to Monday at the outset itself, it proceeded to hear the plea in respect of ED case.

Sibal said that the observations made by the single judge of Delhi High Court in paragraphs 12 to 20 of the judgment regarding alleged money laundering deals between various entities were "copy paste" from the argument note submitted by the respondents in the case after the oral hearing was closed. Chidambaram and his advocates had no notice of the contents of the note, Sibal said. This reflects biased mindset of the judge to deny bail without properly hearing Chidambaram, Sibal argued.

The Solicitor General however denied these submissions as false and asserted that the argument note was submitted before the oral hearings were completed.

Custodial interrogation is necessary because Chidambaram had been evading queries using his mental faculties, grasp of law and political clout, submitted the Solicitor General.

He cited the confessional statement of Indrani Mukherjea, who turned approver in the case, to submit that Chidambaram had demanded kickbacks for FIPB clearance for INX FDI.

"Chidambaram has as many as 17 foreign bank accounts, 10 properties abroad. There is a convoluted money trail which he needs to be confronted with. There is electronic evidence of emails exchanged between parties for laundering money.  Shell companies were created abroad by someone close to him. So we need to confront him with all these evidence. Effective interrogation will not be possible under the protective umbrella of court order", submitted the SG Tushar Mehta.

Dr Abhishek Manu Singhvi supplemented Sibal's arguments by saying that the single judge of the High Court was biased in the matter. 

"The HC judge has referred to an unrelated case of Aircel Maxis to deny bail in this case. In that I have interim protection, but that's not a related case. With utmost respect, I submit that this shows the mindset of the learned judge to deny bail.", he said.

Singhvi also criticized the remarks made by Justice Gaur of Delhi HC that Parliament should repeal anticipatory bail for high profile accused in economic offences.

"If a person is high profile, does it mean that he is not entitled to right to personal liberty?", Singhvi asked.

The allegation is that while being the Finance Minister in 2007, Chidambaram had given approval for about Rs.305 crores Foreign Direct Investment by INX by taking reciprocal benefits from the media house through the companies associated with his son Karti Chidambaram.

The cases were registered in 2017 and 2018 by the CBI and ED respectively.

The Delhi High Court dismissed his application for anticipatory bail on Tuesday after observing that it was a "classic case of money laundering". Chidambaram was termed the "kingpin and key conspirator" of the alleged corruption deal.

The CBI Judge Ajay Kumar Kuhar on Thursday allowed CBI remand for four days observing that the allegations were "serious in nature" and a "detailed and in depth investigation is required in the case".

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