Karti never influenced FIPB: Chidambaram

New Delhi, May 29 (IANS) Breaking his silence, former Finance Minister P. Chidambaram on Monday asserted that his son Karti never influenced the Foreign Investment Promotion Board (FIPB) and dismissed as "false and baseless" the charges in the CBI case against Karti relating to clearance of an FIPB proposal of media company INX Ltd when he was at the helm in the North Block.

Two weeks after his house in Chennai and some other premises were raided, Chidambaram issued a statement maintaining that it was clear from the FIR that he was the target, yet it did not name him.

But he said he could say with absolute certainty that Karti had never met any officer connected with the FIPB and that he had no connection with the applicant company INX Media/INX News.

"Anyone who has worked with me knows that no one would dare to influence my decisions. I had never allowed any family member to speak to me or to any officer of my ministry on any official matter.

"It is therefore preposterous to suggest that a member of my family, with or without my knowledge, influenced, by corrupt or illegal means, the six Secretaries who constituted the FIPB. Such an allegation is a despicable slur on the six Secretaries of the government who constituted the FIPB at the relevant time."

Chidambaram said the FIR alleged that there was a conspiracy involving public officials who were induced by corrupt and illegal means to grant the approval but yet the FIR does not name a single public official.

"The most ridiculous allegation is that the so-called gratification was a cheque for Rs. 10 lakh -- I repeat, a cheque for Rs. 10 lakh. (The cheque was in favour of a consulting company that had raised an invoice for work done, accounted for the income, and paid income tax on the amount.)," he said.

As far as the FIPB cases were concerned, he said he had approved only those cases that were recommended by the FIPB and put up to him by Secretary, Economic Affairs.

Chidambaram said his son and his business friends were being targeted.

"I am indignant that some of the most distinguished civil servants of the country have been humiliated by the FIR. In the instant case, it is not one Secretary but six Secretaries (and the FIPB secretariat) who are being humiliated on a ridiculous charge on being influenced by an alleged gratification of Rs. 10 lakh," he said.

The senior Congress leader said he was making the statement so that the "misinformation emanating from Chennai" was exposed. "Ultimately, the course of law will expose the mischief makers. I have advised my son to fully cooperate with investigation and he will do so," he said.

Chidambaram said two weeks have passed since a "false and baseless" charge was levelled against his son and some of his friends. He said not only did he observe restraint thereafter but he had also advised everyone concerned to observe restraint.

"However, in the last two weeks, leaks and insinuations have been deliberately fed to a section of the media and maliciously circulated in the social media. In fact, I have obtained a copy of the FIR from the social media. The origin of these leaks is Chennai in my home state of Tamil Nadu."

The former minister said the FIPB was serviced by a secretariat and it was chaired by the Secretary, Economic Affairs and included four other Secretaries of Industry, Commerce, External Affairs and Overseas Indian Affairs and the Secretary of the administrative ministry. Five of them were among the senior most IAS officers and the sixth was a senior IFS officer of the MEA.

He said each one of them had a long and distinguished record of service. The FIPB recommendations were submitted to the Finance Ministry where they were once again examined by the junior officers and then by the additional Secretary and the Secretary before the file was put up to the minister.

Each file put up to the minister would usually contain a number of cases and recommendations of the FIPB and the Secretary, Economic Affairs.

Chidambaram said at the relevant time, the FIPB was chaired by Dr D. Subba Rao, IAS, who later became the Governor of RBI. He was succeeded by Ashok Chawla, IAS, who later became Chairman of the Competition Commission of India. The other Secretaries were equally distinguished civil servants.

He said anyone familiar with the working of the FIPB knew that no single officer can take a decision on any proposal. It is the collective decision of six Secretaries.

Chidambaram said Karti was never a director or shareholder of M/s Advantage Strategic Consulting Private Limited. The promoters/directors or ASCPL have, on more than one occasion, made it clear that ASCPL is their company and they alone were responsible for the business of that company.

"They are business friends of Karti Chidambaram and have normal relations that is common among business friends," he said.