EMD bho) JER OF PARLIAMENT (Raja Sab MEME Polen tions Newbee 130008 Benekan cat Seas mal: swams39@aral.com © DR. SUBRAMANIAN SWAMY mmo ie tconomice arvanth Be Sets aectap tonite ec Dea ment Consultative Committ for External Affairs for Commerce, Law 8 Justice (1990-91) ce ese acct aly Gomeniodom ontobour namnsaral om Store Grnteratoal rade 9940) st eTeaitendectodia wnat of TerrSiety oeiva Fee Neverd Unvemy ns orate Pine unsters Bios DAK SECTION Shr} Narendra Modi OA SIF Prime Minister oT New Delhi Dear Prime Minister March 7, 2017 ‘The Income Tax [IT] Investigation Wing in Chennai has, after seizure of documents and hard disks from the companies and residence of Mr, Karthi [the son of P. Chidambaram, former UPA Minister], had found and compiled the huge illegal investments abroad and established his illegal secret foreign bank accounts of his and family. The IT analysis in a formal Report of around 200 pages submitted to the Revenue Secretary in the Ministry of Finance [MoF] explains the massive accumulation of properties across the globe by the Chidambaram family, This report was submitted six months ago to Income Tax head quarters in Delhi, and to the MoF. But no action however followed because certain senior officials owing allegiance to Mr. P. Chidambaram in the Ministry have blocked further action and are preventing honest officers from doing their duty. However, a whistleblower from Chennai Office of the Income Tax Department has in the public interest of fighting against corruption apprised of the same. It is that these persons in Finance Ministry and Income Tax Department.‘The main details in the Income Tax Report with MoF are as follows: I. Legal Acquisition of Property in United Kingdom 1. The Income Tax which seized the hard disks from Karthi’s companies found that P Chidambaram, wife Nalini Chidambaram, son Karti and his wife Srinidhi, had in 2008 jointly purchased a property and a big palatial house in Cambridge town in UK. 2. As per the seized Income Tax documents, the property bought by Mr. P. Chidambaram and family is at : 5,Holben Close, Cambridge, U.K. CB237AQ. This huge property and home was purchased from Edmund Suley Holt and Heather Holt, and the money for the purchase was drawn from Karti’s personal account in London's Metro Bank account number : 16714313. 3. Mr. Chidambaram never declared this property in any of his mandatory affidavits as candidate for elections to Lok Sabha or Rajya Sabha or as MP or Minister. Karthi, who contested Lok Sabha election in 2014 and had lost quite badly, also did not declare in his affidavits to Election Commission this asset or his Metro Bank account. 4. Hence this property in Cambridge owned by Mr. P. Chidambaram and son Karthi, with no declared source of ineome for its acquisition is a grave illegality. This is plain corruption under Section 13 (1) (e) of the Prevention of Corruption Act. Il. Front Company of Karthi: Advantage Strategic Consulting Private Limited Company [ASCPL registered with RoC, Chennai} 5, ASCPL had illegally under Indian law, also opened a wholly owned subsidiary in Singapore of Advantage Strategic Consulting Pvt Ltd of the same name but registered in Singapore.6. The IT has unearthed that large sums of money was transacted through Karthi controlled Advantage Strategic Consulting Private Limited Company’s bank accounts in Singapore to buy properties in UK like purchase of an 88 acres farm house, known as Surridge Farm in Somerset in UK and another property in Cambridge, at Ceres, 29, Meade Hose at Cambridge. 7. All these illegal transactions had originated from Karthi controlled company Advantage Strategic Consulting Private Limited (ASCPL), which is involved in receiving kickbacks in Aircel-Maxis Seam. 8. Ihave already exposed in the Supreme Court [In IA no.36 and IA No. 78] that ASCPL received Rs.26 lakh from Aircel, when Aircel-Max files were with Mr. Chidambaram in March 2006 for approval of the FIPB clearance. 9, ED-IT raids found that $2 lakh dollars had been illegally received by Karthi’s another company, Chess Management, from three subsidiaries of Maxis Group namely Maxis Mobile Sdn Bhd, Astro All Asia Network. Plc, and Bhumi Armada Berhad. 10.The Income Tax- ED joint raids found that after the Aircel-Maxis deal, there was a large money flow into and out of the ASCPL Singapore subsidiary Company. This money was used to buy huge properties, hotels, farm houses, vineyards, stud farms and race horses and Tennis Courts in 14 countries. 11. The investigators thus found Karthi’s 21 secret foreign bank accounts also [disclosed in my earlier letter to you last month as well in a Media Conference in Delhi]. 12.In all Karthi numerous sham companies, including ASCPL, curiously there are five common Directors : CBN Reddy, Bhaskar Raman, Mohanan Rajesh, Ravi Viswanathan and V Padma,13.The Income Tax also found that all these five persons have entered and executed an extraordinarily suspicious Will, stating that they owe all properties and assets to Karthi or his daughter Aditi, out of “ respect and love” for Mr. P Chidambaram and son! This shows that these five persons are nothing but benamis of son Karthi and father Chidambaram, 1. Kickback or Payoffs from Approvals of FIPB Clearances 14.The Income Tax which seized hard disks from Karthi's companies also found that Karti was “privileged” to get monetary kick backs in numerous FIPB deals that were pending for approval of the father as Finance Minister. 15.On Sept 22, 2008, ASCPL received Rs.35 Lakh from INX Media (now known as News X TV Channel), which applied for FIPB clearance of 220 million dollar during the period. 16.Same day another Rs.60 Lakh was paid from INX Media to Northstar Software Solutions Pvt Ltd, Major shares of this Northstar Software Solutions Pvt Ltd controlled by CBN Reddy, who is a Benami and Director of ASCPL and its Singapore subsidiary also. 17.On Sept 24, 2008 another tranche of 20,000 Dollars were paid to ASCPL’s Singapore subsidiary by INX Media. On Sept 26, 2008, ASCPL had a money transaction of 50,000 dollars with Geben Trading L .d in Athens in Greece. This company’s address is 4 Zaf. Matsa Street, 14564 Athens, Greece and incorporated in British Virgin Islands (BY}). 18.The money transactions of ASCPL also show to Geben Trading’s bank account in UBS, Geneva in Switzerland. The emails of banking transaction details were marked to Karthi also and documents showsabout a business takeover of healthcare and rehabilation centers in Greece, 19.All these transactions happened during the INX Media’s FDI approvals for 220 million dollar were pending with Karti’s father Finance Minister P Chidambaram. In short, the murder-accused Peter and Indrani Mukherjea who sold their INX Media paid around crores rupees to Karti linked firms for FIPB clearance. 20.The documents unearthed by Income Tax shows that ASCPL received money from many companies when their FDI investment files were with FIPB and CCEA during Chidambaram’s tenure as Finance Minister. 21.The companies which transferred money to Karti’s ASCPL are Claris Life Sciences, Diageo Scotland Limited which acquired fugitive Vijay Mallya’s UB Spirits, Katra Group, Arcelor Mittal linked Saksoft, Reflections belong to Spark Capital Advisory Private Limited. 22.As per the Income Tax Analysis Report, all these deals involye around Rs. 500 crore kickback to Karthi linked companies for necessary FIPB and CCEA clearances during Chidambaram’s period in Finance Ministry 23. The documents seized from the raid also show that ASCPL received money from Best Land Realty, when the company got a Rs.304 crore loan from PSU Banks. IV. Grease Money for Appointments facilitated with PM and FM 24.In a bizarre payoff, the British company Diageo Scotland Limited which acquired fugitive Vijay Mallya’s UB Spirits paid $ 15,000 as “Service Charges” to Karti’s ASCPL for fixing appoir:zments with then Prime Minister Manmohan Singh, Finance Minister Chidambaram.25.Diageo’s emails copies available with IT “thanks” Karthi for fixing appointment of company owner Lord Blyth of Diageo with Prime Minister Manmohan Singh and Finance Minister Chidambaram. 26. These emails also have as attachment the $15,000 pay out receipt as Service Charges for fixing appointments with PM and FM. 27.This is a clear case of abuse of power initiating case under Section 13 of the Prevention of Corruption Act. 28. Another clear case of favoritism to son’s company by abusing power by Chidambaram is : In September 2006, Russia’s National Industrial Bank (Nazprom) appointed Karti’s ASCPL for Business Consultane: their Joint Venture bid with Indian Overseas Bank. 29.The documents seized by Income Tax include ASCPL’s agreement with Russian Bank Nazprom and also Nazprom’s series of communications With IOB as also on the meetings in Chennai. 30.The emails show that in each transactions with the Russian bank and PSU IOB, Karthi’s ASCPL raked in vast sums of money in the form of consultancy. 31.The Russian Bank’s agreement states Karthi’s ASCPL’s Singapore subsidiary provided for 5% as commission with all transactions with Indian Overseas Bank, apart from the initial $25,000 dollar processing fee. 32. This is a clear case of abuse of power by Finance Minister Chidamabaram to get a cut for son Karthi’s company for each money transfer between PSU Bank IOB and Russian Bank Nazprom. 33.The documents also show that ASCPL got large sums of money as commission from Allianze Securities for sale of NABARD Bonds when Chidambaram was Finance Minister.s Meltraack Ltd in relation to sale of shares and selling of huge tract of land in Mysore to VST Tillers & Tractors Limited. 35. The land was mortgaged to Union Bank of India. Mr. P Chidambaram was shown as unsecured creditor to Meltraack Limited !! 36.Karthi’s ASCPL also received substantial money from a South African company, Nicholas Stynes Associates Limited. This South African company was engaged in providing security to IPL Cricket and the money transactions with Karthi’s company happened when his father MF. Chidambaram was Home Minister. 37.Thus the IT Analysis Report estimates more than Rs.10000 crore worth properties including Farms Houses, Hotels, Tennis Academies, Vine Yards and Stud Farms amassed by Karthi’s companies in 14 countries ineluding London, Malaysia, Monaco, Spain, Croatia, Greece, France, Uzbekistan, Singapore, Sri Lanka and Dubai. 38.Karthi has been served three Summons by the ED, but he has ignored all three with impunity. Such is the patronage of the MoF. 39.Therefore, the CBI, ED and Income Tax should be directed to initiate immediate proceedings under Prevention of Corruption Act, PMLA, Benami Transactions Act and seizure of Black Money against Mr. P. Chidambaram and all his immediate family members. Mel ee Subramanian Swamy