In a significant development, the Delhi High Court has stayed trial court proceedings against senior Congress leader and former Union Finance Minister P. Chidambaram in the high-profile Aircel-Maxis money laundering case. Justice Manoj Kumar Ohri issued the stay order on November 20, 2024, while seeking a detailed response from the Enforcement Directorate (ED). The matter has been adjourned for further hearing on January 22, 2025.
The Allegations Against Chidambaram
The case stems from alleged irregularities during Chidambaram’s tenure as Finance Minister in 2006. At the heart of the controversy is the Foreign Investment Promotion Board (FIPB) approval granted to the Aircel-Maxis deal. The ED has alleged that this approval violated prescribed limits, as it permitted foreign investment above ₹600 crore without proper authorization. The investigative agency has further claimed that Chidambaram’s son, Karti Chidambaram, benefited financially from the deal, linking the approval to purported kickbacks.
Legal Arguments in Court
Chidambaram’s legal team, led by senior advocate N. Hariharan, argued that the trial court took cognizance of the ED’s chargesheet without obtaining the mandatory prosecutorial sanction required for a public servant under the Prevention of Corruption Act. They contended that this procedural lapse invalidates the proceedings against the former minister.
The ED, on the other hand, countered this argument by asserting that no sanction was necessary, as the allegations pertain to actions unrelated to Chidambaram’s official duties.
Court’s Observations
The Delhi High Court found merit in Chidambaram’s contention, leading to a temporary halt on trial court proceedings. The stay order emphasizes the importance of procedural safeguards in cases involving high-ranking public officials.
Background of the Aircel-Maxis Case
The Aircel-Maxis case is part of a broader investigation into alleged corruption during the UPA government’s tenure. Initially investigated by the Central Bureau of Investigation (CBI), the case was later taken up by the ED under the Prevention of Money Laundering Act (PMLA).
In 2014, the ED filed a chargesheet against Chidambaram and his son, accusing them of using their influence to facilitate the Aircel-Maxis deal in exchange for financial favors. The chargesheet outlines alleged money transfers through shell companies, which the ED claims were used to launder funds.
Implications of the High Court’s Order
The Delhi High Court’s stay adds a new layer of complexity to the case, reflecting ongoing debates about procedural integrity and political implications in high-profile corruption cases. The order also highlights the judiciary’s role in ensuring that investigations and prosecutions adhere to legal norms.
As the case awaits its next hearing in January 2025, the outcome could have far-reaching consequences for both Chidambaram’s legal standing and broader anti-corruption efforts in India.
