CBI registers fresh corruption case against Congress MP Karti Chidambaram

The Central Bureau of Investigation (CBI) has registered a new corruption case against Karti Chidambaram, Congress MP and son of former finance minister P Chidambaram. The case involves allegations of bribery and misuse of power to help a company lift a ban on its business activities in India. This adds to the list of legal troubles already faced by the MP, including the high-profile INX Media case.

Allegations against Karti Chidambaram

The CBI accuses Karti of assisting the alcoholic beverage company Diageo Scotland in overturning a ban on the duty-free sale of its Johnnie Walker whisky in India. The ban, imposed by the India Tourism Development Corporation (ITDC) in April 2005, reportedly caused significant financial losses to the company, as duty-free sales accounted for 70% of its business in the country.

According to the CBI’s First Information Report (FIR), Diageo Scotland and another entity, Sequoia Capitals, made suspicious payments to Advantage Strategic Consulting Pvt. Ltd. This consulting firm is allegedly controlled by Karti Chidambaram and his close associate, S Bhaskararaman. The FIR states, “Investigations revealed that funds were transferred by Diageo Scotland and Sequoia Capitals to Advantage Strategic Consulting under the guise of consultancy fees.”

The agency alleges that the company paid $15,000 to Advantage Strategic Consulting to secure Karti’s influence in resolving its issues with the ITDC. This payment is now under scrutiny as part of the corruption investigation.

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Ongoing legal challenges

Karti Chidambaram has faced multiple allegations of corruption in the past. In February 2018, he was arrested by the CBI in the INX Media case, which involved charges of bribery and money laundering. He was released on bail a month later. The INX Media case accused Karti of receiving illegal payments to facilitate foreign investment approvals for the media company during his father’s tenure as finance minister.

The current case adds to his ongoing legal troubles, raising questions about his role in leveraging his political connections for personal gain. Karti has consistently denied all allegations, claiming that they are politically motivated and lack substantial evidence.

Diageo Scotland, a leading global producer of alcoholic beverages, had relied heavily on duty-free sales in India. The ITDC’s 2005 ban on its duty-free products significantly impacted the company’s revenue. Investigations reveal that Karti Chidambaram allegedly used his influence to have the ban lifted in exchange for financial compensation through Advantage Strategic Consulting.

The CBI’s probe into these transactions aims to uncover whether undue influence was used and if the payments violated any laws. The agency’s focus on Advantage Strategic Consulting highlights its suspected role as a conduit for financial transactions linked to corruption.

The allegations against Karti Chidambaram not only add to the controversy surrounding his political career but also draw attention to broader issues of corruption and accountability within India’s political system. If proven guilty, Karti could face severe legal consequences, including imprisonment and disqualification from public office. The case also puts a spotlight on the influence of political connections in business dealings and the need for stronger regulatory oversight.

While Karti maintains his innocence, the case’s outcome will depend on the evidence presented by the CBI and the judicial process. For now, the investigation continues, and all eyes are on the unfolding developments in this high-profile case.