CBI case against Karti Chidambaram over alleged corruption in 2008

Karti Chidambaram, has been made co-accused with Vasan Health Care, British multinational alcoholic beverage company Diageo Scotland, and Sequoia Capital.

In Short

• Case involves lifting government ban on a British liquor maker in 2008
• Suspicious payments made to firm controlled by P Chidambaram
• Diageo Scotland allegedly paid USD 15,000 to lift ban on duty-free liquor

Congress MP Karti Chidambaram has landed in fresh trouble as the Central Bureau of Investigation (CBI) has registered a corruption case against him in a matter that dates back to 2008, officials said on Thursday.

Karti, the son of former Union Finance Minister P Chidambaram, has been made co-accused with Vasan Health Care, British multinational alcoholic beverage company Diageo Scotland, and Sequoia Capital. The case has been lodged over alleged irregularities in lifting a ban imposed on Diageo Scotland for the sale of duty-free liquor in India in 2008.

The CBI registered an FIR in connection with an alleged suspicious payment made to Advantage Strategic Consulting Pvt. Ltd, an entity allegedly controlled by Karti Chidambaram and his close aide S Bhaskararaman by Diageo Scotland and Sequoia Capitals.

"Enquiry revealed that out of various proposals the Foreign Investment Promotion Board (FIPB) enquired into, it was found that Diageo Scotland and Sequoia Capitals suspiciously transferred funds to Advantage Strategic Consulting Pvt. Ltd., an entity controlled by Karti P Chidambaram and his close aide S Bhaskararaman," the FIR said.

As per the CBI FIR, Diageo Scotland used to import duty-free branded whisky.

According to the charges levelled by the CBI against Karti Chidambaramb and others, the India Tourism Development Corporation (ITDC), which had a monopoly over the sale of imported duty-free liquor in India, imposed a ban on the sale of the Diageo Group's duty-free products in India in 2005.

Diageo Scotland suffered huge losses as a result of the embargo as 70 per cent of its business in India pertained to the sale of branded liquor.

Following the development, Diageo Scotland sought Karti Chidambaram's help in lifting the ban, paying USD 15,000 to Advantage Strategic Consulting, which accepted the money as "consultancy fee," the probe agency alleged.

With PTI intputs