ED notice to Karti Chidambaram on FEMA violations, father attacks Modi govt
New Delhi: The Enforcement Directorate (ED) has issued a show-cause notice to Karti Chidambaram and a firm purportedly linked to him for alleged violations of the FEMA laws to the tune of Rs 45 crore.
The agency also issued a similar notice, after over two years of investigations, to another firm M/s Vasan Health Care Private Limited, which is based in Chennai, for alleged forex violations of Rs 2,262 crore.
"The total amount of contravention identified on different counts and found to have been committed by M/s Advantage Strategic Consulting Private Limited in the sale transaction of shares of Vasan (Chennai firm) to overseas investors is around Rs 45 crore.
"Show-cause notice has been issued to M/s Advantage Strategic Consulting Private Limited, its directors and also to Karti P Chidambaram who appears to be the controller and ultimate beneficiary in these transactions," the ED said in its notice.
The total amount of contravention identified by the ED, under the provisions of the Foreign Exchange Management Act (FEMA), by M/s Vasan Healthcare Private Limited and its overseas investors on different counts in the investments received from overseas investors is around Rs 2,100 crore and and additional Rs 162 crore, thereby totalling to Rs 2,262 crore.
Senior Congress leader P Chidamabaram however accused the Enforcement Directorate (ED) of making "baseless" and "ridiculous" allegations against his son Karti, saying the Modi government cannot silence his voice.
The former Union Minister said the ED has a habit of "recycling allegations" from time to time.
"Today's press release by the ED is another example. The allegations in the press release are baseless, totally false and ridiculous," he said in a statement.
His comments came after the ED said it has issued a show cause notice to Karti and a firm purportedly linked to him for alleged violation of FEMA to the tune of Rs 45 crore.
"No notice has been served upon Karti Chidambaram so far. If a notice is received, a suitable reply will be sent.
"By targeting Karti Chidambaram with baseless notices, the government cannot silence my voice or stop my writing," said Chidambaram, who served as Finance and Home Minister in UPA regime.
